CEU Electronic Theses and Dissertations, 2022
| Author | Tojidinov, Shohrukh |
|---|---|
| Title | Turkey and the US should consider introducing economic reforms in the aftermath of the pandemic |
| Summary | Rising income and wealth inequality were always a topical issue in the US and Turkey, which increased to much higher levels in the aftermath of the pandemic. On the other hand, loosening monetary policies as a response to the pandemic and overall growth, contributed significantly towards higher wealth inequality and inflation. This paper conducts a comparative case study to discover the current situation of rising income/wealth inequality and inflation both in the US and Turkey and proposes significant policy recommendations that can help to fix these issues. A one-time wealth tax together with annual progressive tax on appreciated gains of unrealized stocks can assist to raise revenues and to redistribute wealth efficiently. Up until now, as was discovered in this research, redistribution effects of transfers have not been very effective as wealth/income inequality have continued to rise further both in the US and Turkey. This paper suggests redistributing significant shares of transfers to early-age and primary education and to high poverty schools, which become main determinants of especially low-income children’s success in the future and can lower income and wealth inequality in the future. Moreover, after loosening monetary policies during the pandemic, tightening monetary policies with higher interest rates are crucial to bring down inflation rate to its initially projected level. |
| Supervisor | Horvath, Julius |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2022/tojidinov_shohrukh.pdf |
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