Jim: > 1) the econometrics does not say that Rajan's link between income > inequality and financial crisis is wrong. Rather, it says that _in > general_ increasing income inequality isn't a major proximate > determinate of the existence of the expansion of credit, which is the > main cause of banking crises.
I buy this. Indeed, I am of the opinion that although Raghu is concerned with the "right" issues, he does not formulate the issues "right" most of the time. Like, what causes income inequality? Also, what does inequality mean? An average income of $5000 with a standard deviation of $100 indicates inequality, also. That is, not all are equal. Is this a big deal? However, what I said about econometrics remains: Give me the data and tell me what you want me to show, I will show it. Best, Sabri _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
