Inequality’s unrelenting rise has been the subject of growing attention that has come, in the last few years, from unexpected quarters. As a recent example, an article appeared on the IMF’s Finance & Development journal, “Neoliberalism: Oversold?” put the spotlight on the negative effects that inequality has on the level and sustainability of growth. The article generated not only wide press coverage, but also a number of responses. Almost in sync with the article, the IMF felt the need to publish an interview with its Chief Economist, Mr. Maurice Obstfeld, clarifying that the policy rethink at the IMF did not represent revolution, but evolution. Needless to say, to many analysts who had closely followed IMF policies for years, the clarification was entirely unnecessary. In fact, critics were quick to comment that the article was only a mild departure from IMF doctrine, not reflected in actual IMF programs, and even reasserted points that continue to be the focus of contention such as the positive growth effects of trade liberalization, privatization and foreign direct investment. Nonetheless the article, reflected wider concern with inequality at an institution that until not long ago considered it an afterthought.

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