So much for trickle down: only bold reforms will tackle inequality

Even the IMF recognises the vicious circle in which inequality breeds instability, which causes recession and spending cuts that make inequality worse

Christine Lagarde took time off last week from grappling with the Greek debt crisis to make a speech about inequality. The managing director of the International Monetary Fund chose a nautical metaphor first used by John F Kennedy.

Back in the early 1960s, the then US president hailed economic growth as a rising tide that lifts all boats. That was no longer true, according to Lagarde.

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