Authors
Steve Hanke
Outlet
Financial Times
Type
Letter
Date published
January 17, 2025
Countries/regions
United States of America
Topic
Monetary Policy
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Last edited time
Aug 7, 2026 2:54 AM
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Letter: To Understand Inequality, Follow the Money Supply
Author: Steve H. Hanke
Outlet: Financial Times
Date: January 17, 2025
In a letter to the Financial Times, Hanke responds to the debate over whether economic inequality has genuinely worsened, arguing that the real story lies in the growth of the money supply rather than income statistics alone. He contends that expansions in money and credit disproportionately inflate asset prices, benefiting asset holders and widening the wealth gap in ways that standard income-based inequality measures fail to capture, meaning tracking monetary growth is essential to understanding the true trajectory of inequality.
Full Citation:
"Letter: To understand inequality, follow the money supply," Financial Times, January 17, 2025.