{"product_id":"engine-of-inequality-isbn-9781119726746","title":"Engine of Inequality","description":"\u003cp\u003e\u003cb\u003eThe first book to reveal how the Federal Reserve holds the key to making us more economically equal, written by an author with unparalleled expertise in the real world of financial policy\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFollowing the 2008 financial crisis, the Federal Reserve’s monetary policy placed much greater focus on stabilizing the market than on helping struggling Americans. As a result, the richest Americans got a lot richer while the middle class shrank and economic and wealth inequality skyrocketed. In \u003ci\u003eEngine of Inequality, \u003c\/i\u003eKaren Petrou offers pragmatic solutions for creating more inclusive monetary policy and equality-enhancing financial regulation as quickly and painlessly as possible.\u003c\/p\u003e \u003cp\u003eKaren Petrou is a leading financial-policy analyst and consultant with unrivaled knowledge of what drives the decisions of federal officials and how big banks respond to financial policy in the real world. Instead of proposing legislation that would never pass Congress, the author provides an insider's look at politically plausible, high-impact financial policy fixes that will radically shift the equality balance. Offering an innovative, powerful, and highly practical solution for \u003ci\u003eimmediately\u003c\/i\u003e turning around the enormous nationwide problem of economic inequality, this groundbreaking book:\u003c\/p\u003e \u003cul\u003e \u003cli\u003ePresents practical ways America can and should tackle economic inequality with fast-acting results\u003c\/li\u003e \u003cli\u003eProvides revealing examples of exactly how bad economic inequality in America has become no matter how hard we all work\u003c\/li\u003e \u003cli\u003eDemonstrates that increasing inequality is disastrous for long-term economic growth, political action, and even personal happiness\u003c\/li\u003e \u003cli\u003eExplains why your bank's interest rates are still only a fraction of what they were even though the rich are getting richer than ever, faster than ever\u003c\/li\u003e \u003cli\u003eReveals the dangers of FinTech and BigTech companies taking over banking\u003c\/li\u003e \u003cli\u003eShows how Facebook wants to control even the dollars in your wallet\u003c\/li\u003e \u003cli\u003eDiscusses who shares the blame for our economic inequality, including the Fed, regulators, Congress, and even economists\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003e\u003ci\u003eEngine of Inequality: The Fed and the Future of Wealth in America\u003c\/i\u003e should be required reading for leaders, policymakers, regulators, media professionals, and all Americans wanting to ensure that the nation’s financial policy will be a force for promoting economic equality.\u003c\/p\u003e \u003cp\u003eAcknowledgments xi\u003c\/p\u003e \u003cp\u003eAbout the Author xiii\u003c\/p\u003e \u003cp\u003eIntroduction xv\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 \u003c\/b\u003e\u003cb\u003eInequality: Why It’s So Much Worse and What to Do About It 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat We Know about Inequality that Economists Don’t 4\u003c\/p\u003e \u003cp\u003eThe Economic-Recovery Mirage 5\u003c\/p\u003e \u003cp\u003eWhy So Unequal So Fast? 7\u003c\/p\u003e \u003cp\u003eRegulatory Wreckage 12\u003c\/p\u003e \u003cp\u003eHow to Fix Financial Policy 14\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 \u003c\/b\u003e\u003cb\u003eHow Unequal Are We? 18\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEconomic Inequality Fundamentals 19\u003c\/p\u003e \u003cp\u003eWho Has How Much 22\u003c\/p\u003e \u003cp\u003eWhat of Wealth? 24\u003c\/p\u003e \u003cp\u003eThe Inequality Engine 24\u003c\/p\u003e \u003cp\u003eWorse Than That 25\u003c\/p\u003e \u003cp\u003eThe Most Inclusive Ever? 27\u003c\/p\u003e \u003cp\u003eThe Great Financial Crisis and Its Equality Aftermath 29\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 \u003c\/b\u003e\u003cb\u003eWhat Makes Us So Unequal 32\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Mechanical Engineering of Economic Inequality 34\u003c\/p\u003e \u003cp\u003eDeath and Taxes 35\u003c\/p\u003e \u003cp\u003eThe Role of Transfer Payments 37\u003c\/p\u003e \u003cp\u003eA Supply-Side Solution? 38\u003c\/p\u003e \u003cp\u003ePublic Wealth: A Sputtering Part in the Equality Engine 39\u003c\/p\u003e \u003cp\u003eIs Education the Answer? 41\u003c\/p\u003e \u003cp\u003eIs Trade Policy a Problem? 42\u003c\/p\u003e \u003cp\u003eGlobal Policy Reform? 43\u003c\/p\u003e \u003cp\u003eWhat to Do? 45\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 \u003c\/b\u003e\u003cb\u003eWhy Does Economic Inequality Matter So Much? 46\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eInequality and Mortality 47\u003c\/p\u003e \u003cp\u003ePolitical Polarization 49\u003c\/p\u003e \u003cp\u003eInequality’s Eviscerating Cost 50\u003c\/p\u003e \u003cp\u003eInequality and the Long Recession 52\u003c\/p\u003e \u003cp\u003eFinancial-Crisis Risk 53\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 \u003c\/b\u003e\u003cb\u003eFollowing the Money 55\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHow Central Banks Work 57\u003c\/p\u003e \u003cp\u003eThe Modern Monetary-Policy Construct 60\u003c\/p\u003e \u003cp\u003eThe Fed’s Bailout Buckets 62\u003c\/p\u003e \u003cp\u003eThe Fed’s Payment Powers 64\u003c\/p\u003e \u003cp\u003eRules of the Financial Road 65\u003c\/p\u003e \u003cp\u003eFour Fundamental Financial-Policy Flaws 69\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 \u003c\/b\u003e\u003cb\u003eHow Monetary Policy Made Most of Us Poorer 73\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Fed’s Heavy Hand 76\u003c\/p\u003e \u003cp\u003eWhy It’s the Fed’s Fault 77\u003c\/p\u003e \u003cp\u003eHow Ultra-Low Interest Rates Made America Still Less Equal and QE Still More Inequitable 80\u003c\/p\u003e \u003cp\u003eThe High Cost of Low-Rate Debt 83\u003c\/p\u003e \u003cp\u003eThe Low-Unemployment Myth 85\u003c\/p\u003e \u003cp\u003eThe Anti-Wealth Effect 87\u003c\/p\u003e \u003cp\u003eMaking Matters Still Worse 91\u003c\/p\u003e \u003cp\u003eA Bigger Fed, Lower Rates, an Extreme Financial Crisis 93\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 \u003c\/b\u003e\u003cb\u003eHow to Make Monetary Policy Make Us More Equal 95\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Aggregate-Data Error 98\u003c\/p\u003e \u003cp\u003eThe Fed’s Real Mandate 102\u003c\/p\u003e \u003cp\u003eThe Fourth Mandate 104\u003c\/p\u003e \u003cp\u003eThe Fed’s Giant Faucet 105\u003c\/p\u003e \u003cp\u003ePossible Solutions 108\u003c\/p\u003e \u003cp\u003eSlowing the Inequality Engine 111\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 \u003c\/b\u003e\u003cb\u003eReckoning with Regulation 113\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eConsumer Finance Before the Crash 115\u003c\/p\u003e \u003cp\u003eAre Debtors Just Deadbeats? 117\u003c\/p\u003e \u003cp\u003eAre Banks to Blame? 118\u003c\/p\u003e \u003cp\u003eThe Businesses Banks Left Behind 120\u003c\/p\u003e \u003cp\u003eOther Precursors of the Crash That Came 121\u003c\/p\u003e \u003cp\u003eCapitalism and Capital Regulation 123\u003c\/p\u003e \u003cp\u003eA Capital Cure 127\u003c\/p\u003e \u003cp\u003eGoing with the Flow 128\u003c\/p\u003e \u003cp\u003eDeath without Destruction 130\u003c\/p\u003e \u003cp\u003eThe Consumer-Protection Quagmire 131\u003c\/p\u003e \u003cp\u003eAn Unreadable Rulebook Thrown Only at Banks 133\u003c\/p\u003e \u003cp\u003eThe Bleak Outlook and a Better Future 134\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 \u003c\/b\u003e\u003cb\u003eRemaking Money 137\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat Money Is and Will Be 139\u003c\/p\u003e \u003cp\u003eThe Great Unequalizer 141\u003c\/p\u003e \u003cp\u003eTurning Money into Data 143\u003c\/p\u003e \u003cp\u003eWhat Makes Money Good Money 145\u003c\/p\u003e \u003cp\u003eCrafting a Good Digital Dollar 146\u003c\/p\u003e \u003cp\u003eHow Money Moves 148\u003c\/p\u003e \u003cp\u003eThe Central-Bank Solution 151\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 \u003c\/b\u003e\u003cb\u003eRules to Equitably Live By 153\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhy Not Just Deregulate? 156\u003c\/p\u003e \u003cp\u003eLearning to Love Like-Kind Rules 158\u003c\/p\u003e \u003cp\u003eThe Specifics of Symmetric Regulation 161\u003c\/p\u003e \u003cp\u003eRaising Up the Regulatory Playing Field 162\u003c\/p\u003e \u003cp\u003eBuilding a New, Equality-Focused Banking System 165\u003c\/p\u003e \u003cp\u003eBanking While Mailing 166\u003c\/p\u003e \u003cp\u003eEstablishing Equality Banks 168\u003c\/p\u003e \u003cp\u003eNew Money for a New Mission 170\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 \u003c\/b\u003e\u003cb\u003eFinancial Policy for an Equitable Future 175\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTurning the Fed into a Force for Good 176\u003c\/p\u003e \u003cp\u003eThe Fed’s Failings 178\u003c\/p\u003e \u003cp\u003eThe Fed’s Equality Toolkit 178\u003c\/p\u003e \u003cp\u003eThe First Fix: Understanding America as It Is 180\u003c\/p\u003e \u003cp\u003eThe Second Fix: Set an Equality Plan and Say So 181\u003c\/p\u003e \u003cp\u003eThe Third Fix: A Far Smaller Fed Portfolio 183\u003c\/p\u003e \u003cp\u003eThe Fourth Fix: Normal, Moderate Interest Rates 187\u003c\/p\u003e \u003cp\u003eThe Final Fix: Ensuring Financial Stability 188\u003c\/p\u003e \u003cp\u003eEnding the Doom Loop 190\u003c\/p\u003e \u003cp\u003eThe Future of Equitable Finance 192\u003c\/p\u003e \u003cp\u003eNotes 193\u003c\/p\u003e \u003cp\u003eIndex 241\u003c\/p\u003e \u003cp\u003eDubbed by \u003ci\u003eAmerican Banker\u003c\/i\u003e as “the sharpest mind analyzing banking policy today—maybe ever,”  \u003cb\u003eKAREN PETROU\u003c\/b\u003e is one of the most influential experts on financial policy and regulation in the world. She is cofounder and Managing Partner of Federal Financial Analytics, a consulting firm that provides analysis and advisory services on legislative, regulatory, and public-policy issues. Known for nonpartisan analysis, Petrou has testified before many U.S. government agencies. She is frequently interviewed for expert commentary and her work has been featured in the \u003ci\u003eFinancial Times, Wall Street Journal, American Banker,\u003c\/i\u003e and \u003ci\u003eMarketplace\u003c\/i\u003e. Recently, Petrou has been featured for her pro bono work developing a new financial instrument to speed treatments and cures for disabilities and diseases, starting with those that cause severe vision impairment. Karen lives in Washington D.C. with her husband Basil and guide dog, Zuni.\u003c\/p\u003e  \u003cp\u003eEconomic inequality in America is a problem that is not going away. Even before the COVID-19 crisis wrought havoc on the economy, the disparity between the rich and the poor was at levels not seen since World War II.\u003c\/p\u003e \u003cp\u003eMoonshot proposals to curb inequality in America include progressive tax reform aimed at the one-percenters, mass cancellation of student loans, and an overhaul of public education. While these may all be formidable weapons to fight inequality, they have little chance of clearing the necessary political hurdles in Washington. \u003c\/p\u003e\u003cp\u003eWithout bipartisan consensus, are we doomed to watch idly as the yawning gap between the rich and poor grows dangerously out of control? \u003c\/p\u003e\u003cp\u003eAs one of the most insightful policy observers in the world, Karen Petrou argues we’re looking for solutions in all the wrong places. In \u003ci\u003eEngine of Inequality\u003c\/i\u003e, she persuasively takes dead aim at the Federal Reserve as a crucial but unrecognized source of economic inequality and offers meaningful policy proposals that don’t require an act of Congress. \u003c\/p\u003e\u003cp\u003eSince the 2008 financial crisis, inequality has been rapidly increasing in no small part because of policies enacted by the Federal Reserve.  Monetary and regulatory policy may seem far afield from economic inequality—but \u003ci\u003ewho gets the money how\u003c\/i\u003e is the mission-critical job of central banks such as the Fed, which move money across our financial system. Like it or not, the Fed’s policies have a profound impact on the balance of equality. \u003c\/p\u003e\u003cp\u003ePetrou boldly suggests the Fed must pull its head out of the sand. She details the hard data showing how the Fed’s post-crisis policies have unintentionally exacerbated the problem: reliance on aggregate data like Gross Domestic Product (GDP) obscures the economic reality of American families, trickle-down programs that rescue financial markets only benefit the rich, ultra-low interest rates impede meaningful savings by the middle class and others. \u003c\/p\u003e\u003cp\u003e\u003ci\u003eEngine of Inequality\u003c\/i\u003e unveils several pragmatic actions that the Federal Reserve can and should take immediately to reverse its adverse influence on economic inequality and use its power to move the money into a force for shared prosperity.  \u003c\/p\u003e\u003cp\u003ePRAISE FOR\u003cb\u003e ENGINE\u003c\/b\u003e OF \u003cb\u003eINEQUALITY\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e“Karen Petrou, one of the world’s deepest financial thinkers, puts her finger on the proximate cause of the pre- and post-Covid enormous increase in the stock market and associated growth in  extreme U.S. wealth inequality. It’s the Federal Reserve’s ongoing No-Cost Lender of First Resort Policy. Her book is a tour de force—brilliant,  fundamental, elucidating, and engaging. It’s also a sad story about well-meaning policy boomeranging badly on the middle class.” \u003c\/p\u003e\u003cp\u003e—\u003cb\u003eLaurence Kotlikoff,\u003c\/b\u003e Professor of Economics at Boston University, President of Economic Security Planning, and a \u003ci\u003eNew York Times\u003c\/i\u003e bestselling author \u003c\/p\u003e\u003cp\u003e“This book is highly critical of Fed policy and will receive a lot of attention, especially if Fed policy doesn’t work in the coming years.” \u003c\/p\u003e\u003cp\u003e—\u003cb\u003eHenry Kaufman,\u003c\/b\u003e President, Henry Kaufman \u0026amp; Company \u003c\/p\u003e\u003cp\u003e“Petrou’s book uncovers a hidden engine of our skyrocketing inequality: financial policy. In accessible and engaging prose, Petrou takes us through the inner workings of monetary policy at the Fed and financial regulations, how they’ve made inequality worse, and how they could instead be retooled to take us to a more equitable future. A novel look at the problem of inequality and bold ideas to help resolve it. A must-read.” \u003c\/p\u003e\u003cp\u003e—\u003cb\u003eEmmanuel Saez,\u003c\/b\u003e Director of the Center for Equitable Growth at the University of California at Berkeley  \u003c\/p\u003e\u003cp\u003e“[Petrou] draws a direct connection between the Federal Reserve’s decisions and the rich getting richer, with others struggling to get by.”—\u003cb\u003e\u003ci\u003eNew York Times DealBook\u003c\/i\u003e\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e “Petrou’s excellent new book explains how it has been exacerbated and accelerated by the financial policies that were set in place to save the financial system from collapse after the crisis of 2007 and 2008.” —\u003cb\u003eDylan Schleicher, Editorial Director, Porchlight Books\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e \u003c\/p\u003e \u003cp\u003e“Karen Petrou has for decades played the quiet role of consultant and adviser to banks, central banks, and large investors, helping them slash through the confusion of constantly evolving monetary and regulatory policy. It’s a job that prioritizes dispassionate analysis over advocacy. Today, that changes, with the publication of her new book.”—\u003cb\u003eMatt Peterson, Barron’s \u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e \u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e“Banking consultant Karen Petrou is right that Federal Reserve policies have helped the rich.” —\u003cb\u003ePeter Coy, Bloomberg BusinessWeek\u003c\/b\u003e\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989135802597,"sku":"NP9781119726746","price":29.95,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781119726746.jpg?v=1761782941","url":"https:\/\/k12savings.com\/products\/engine-of-inequality-isbn-9781119726746","provider":"K12savings","version":"1.0","type":"link"}