Question for our readers…

I am watchng the video of Paul Krugman on Bill Moyers. Mr. Krugman is seeing things about inequality that he hadn’t seen before Piketty’s book. So he is now seeing that inequality is a huge problem now and into the future. Inequality is the one major problem in the economy.

Question…

How should monetary policy change if reducing inequality was seen as the most important priority?

And please do not say “Helicopter drops of money”. You must use the tools available to central banks. The one stipulation is that your answer must reduce inequality, irregardless of the side effects. Think like a doctor giving medicine for the main illness knowing that there may be unpleasant side effects, like losing hair in chemotherapy.

Write your answers in the comments below…