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Income inequality has garnered significant attention in recent years due to its potential impacts on economic and societal outcomes. Higher levels of inequality can erode trust in institutions, hinder social mobility, exacerbate economic crises, and even contribute to the rise of populism. One country that has seen a notable shift in income and wealth distribution in recent decades is Japan. In their paper, Karl-Friedrich Israel, Tim Sepp and Nils Sonnenberg analyze the role of Japan's central bank and find that its monetary policy helps explain this development.

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