The impact of monetary systems on income inequity and wealth distribution

PurposeThis study uses the autoregressive distributed lag model (ARDL) econometric approach to investigate empirically the effects of cryptocurrencies, the gold standard and traditional fiat money on global income inequality measured based on the Gini coefficient, and various ratios of income inequality distribution such as top 1 per cent, top 10 per cent, top 40 per cent and top 50 per cent.Design/methodology/approachThe study uses the ARDL econometric approach.FindingsThe findings indicated that cryptocurrency and gold standard monetary systems contributed significantly to reducing global inequality of income and wealth distribution. Conversely, the traditional fiat money system contributes positively to global income and wealth inequality while also contributing significantly to their fluctuation.Practical implicationsThis suggests that the fiat monetary system results in the coercive redistribution of income and wealth if governments pursue a social welfare policy. They must resolve this conflict between the current fiat monetary system and social policy by opting for an alternative monetary system such as cryptocurrency or gold standard. These alternative monetary systems offer the promise of resolving the income and wealth inequality associated with the traditional monetary system which are accompanied with the channels of inflation, lack of financial inclusion and debt creation, and to offer a more sustainable financial system.Originality/valueThe study recommends that monetary policy must be revisited to account for its direct effect on income and wealth redistribution to achieve social welfare goals.

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Some problems in Piketty: an internal critique

Journal of Income Distribution ◽

10.25071/1874-6322.40304 ◽

2019 ◽

pp. 101-118

Author(s):

Alan Tapper

Keyword(s):

Income Inequality ◽

Wealth Distribution ◽

National Income ◽

Wealth Inequality ◽

First Century ◽

The Other ◽

Income Ratio ◽

Twenty First Century ◽

Distribution Trends

Thomas Piketty’s evidence on wealth distribution trends in Capital in the Twenty-First Century shows that – contra his own interpretation – there has been little rise in wealth inequality in Europe and America since the 1970s. This article relates that finding to the other principal trends in Piketty’s analysis: the capital/national income ratio trend, the capital-labor split of total incomes and the income inequality trend. Given that wealth inequality is not rising markedly, what can we deduce about the putative causes that might be operating upstream? Only the capital-labor split looks like a plausible explanation of the wealth inequality trend.

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DINAR AND DIRHAM; SUSTAINABLE MONEY FOR SUSTAINABLE SOCIETY

ICCD ◽

10.33068/iccd.vol2.iss1.258 ◽

2019 ◽

Vol 2 (1) ◽

pp. 517-521

Author(s):

Eko Tama Putra Saratian ◽

Harefan Arief ◽

Mochamad Soelton ◽

Nico Alexander Vizano ◽

Mugiono Mugiono

Keyword(s):

Shelf Life ◽

Community Service ◽

Gold Standard ◽

Precious Metals ◽

Ordinary People ◽

Sustainable Society ◽

The Real ◽

The Public ◽

Fiat Money ◽

Monetary System

This is a community service related to the development of economic society through socialization on dinar and dirham as sustainable money. Money in sharia is precious metals such as gold and silver, or commodities such as wheat, barley, dates, and salt, which are the consumed commodities daily as food and have a shelf life. The failure of the current economic and monetary system is caused by the use of fiat money as a medium of exchange that deviates from the gold standard. Ironically, many ordinary people do not understand the real concept of money. In returning the standard of exchange, it is necessary to learn deeply about this subject. For this reason, there is a need for socialization to the wider community to open the way for the return of the dinar and dirham as a true medium of exchange. The results of the activity are expected to increase good understanding of the concept of money and the public can learn to do transaction using dinar and dirham in the future.

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Inequality will deepen global health divide

Emerald Expert Briefings ◽

10.1108/oxan-db211691 ◽

2016 ◽

Keyword(s):

Income Inequality ◽

Life Expectancy ◽

Social Services ◽

Labour Force ◽

Wealth Inequality ◽

Developed Countries ◽

Potential Growth ◽

Content Type ◽

Disadvantaged Groups ◽

Quality Health

Subject Health and income inequality correlation. Significance Income and wealth inequality are rising. This has a profound impact on population health, as it is proven to cause lower life expectancy, higher child mortality rates, higher rates of non-communicable diseases and increased deaths from violence. The relationship between income inequality and poor health is persistent across both developing and developed countries, despite policy initiatives to tackle socio-economic differentiation. Impacts National economies could face lower potential growth due to the loss of labour force from unhealthy portions of the population. Disadvantaged groups will be excluded from high-quality health services, leading to higher levels of mortality and lower life expectancy. Social services are overburdened by patients in advanced stages of disease due to inadequate prevention among disadvantaged groups.

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Exploration of Gold Standard, Credit Currency and Digital Currency

Finance and Market ◽

10.18686/fm.v5i4.2962 ◽

2020 ◽

Vol 5 (4) ◽

pp. 316

Author(s):

Sirui He

Keyword(s):

Gold Standard ◽

Standard System ◽

New Era ◽

Development Status ◽

Digital Currency ◽

Monetary System ◽

Monetary Systems ◽

Currency Policy ◽

Effective Development

<p>In the perspective of present monetary system, the author proposes that we should analyze the comprehensive effectiveness with the combination of the former gold standard system and diversified monetary systems, such as the credit currency and the digital currency, which are highlighted in this new era, and confirm the more complete digital currency policy according to present development status so as to promote the healthier and more reasonable and effective development of the monetary funds. In this paper, the author launches research and exploration with the combination of gold standard, credit currency and digital currency.</p>

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In Defense of the Euro: Austrian School Approach (comment)

Voprosy Ekonomiki ◽

10.32609/0042-8736-2013-3-152-160 ◽

2013 ◽

pp. 152-160

Author(s):

A. Rakviashvili

Keyword(s):

Exchange Rates ◽

Gold Standard ◽

Austrian School ◽

Monetary System ◽

Fixed Exchange Rates ◽

Monetary Systems

The article critically analyzes theoretical arguments in favor of gold standard, the euro and fixed exchange rates that were set out in the article of H. Huerta de Soto ‘In Defense of the Euro: Austrian School Approach’ (Voprosy Ekonomiki. 2012. No 11). Monetary systems alternative to the gold standard are considered. It is shown that they are at least as much supported by liberal economists as the gold standard. The author emphasizes weakness of euro and gold standard and proves necessity of scaled reforms before the gold standard or alternative monetary system with the same characteristics may be implemented.

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The Great Recession and wealth in the United States: differentials by religious affiliation

International Journal of Social Economics ◽

10.1108/ijse-08-2017-0355 ◽

2018 ◽

Vol 45 (9) ◽

pp. 1335-1354

Author(s):

Sedefka V. Beck ◽

Donka Mirtcheva Brodersen

Keyword(s):

Great Recession ◽

Religious Affiliation ◽

Wealth Distribution ◽

Wealth Inequality ◽

The United States ◽

Religious Groups ◽

Content Type ◽

The Great Recession ◽

Before And After ◽

Wealth Differentials

Purpose The purpose of this paper is to examine wealth dynamics through the Great Recession along a dimension previously not studied, religious affiliation. Specifically, this paper analyzes wealth differentials and relative wealth losses among religious groups at the mean and along the wealth distribution before and after the Great Recession. Design/methodology/approach Drawing on data from the Panel Study of Income Dynamics and including a wide array of control variables, the paper analyzes the impact of religious affiliation groups on wealth pre- and post-Recession, using OLS, generalized least squares and quantile regression models. Findings The findings show that wealth differentials among religious groups exist both before and after the Recession and that wealth disparities are greater for people at the low end of the wealth distribution, who lost disproportionately more wealth across religious groups. Social implications The results suggest that the Great Recession further increased wealth inequality yet along another dimension, religious affiliation. These findings imply that in order to decrease wealth inequality and minimize other harmful effects of adverse macroeconomic events, religious institutions may provide education on financial management strategies, especially to those at the low end of the wealth distribution. Originality/value This paper is the first of its kind to build upon two bodies of literature: the research on religion and wealth and the research on wealth losses and the Great Recession. It is also the first paper to explore the religion–wealth relationship after the Great Recession and along the wealth distribution.

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