The timing of inequality undermines Rajan's hypothesis: the big increases in both 90/10 and 50/10 inequality occurred in the 1980s, while the late 1990s and 2000s were remarkable for the bottom and middle doing reasonably well—so Rajan's story requires an awkward ~20-year delay between the 1980s inequality rise and the crisis.

causalpending

Speaker

Daron Acemoglu

Evidence Quote

you need the story that the inequality caused it... a 20 year delay

Source

Daron Acemoglu on Inequality and the Financial Crisis 02/21/2011EconTalk
Created: 6/16/2026, 2:36:28 PM

My Notes

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