This document discusses the growing wealth of rentiers (those who derive income from property or investments rather than wages) worldwide and its implications. It presents data showing that between 1987 and 2014, the share of wealth owned by rentiers relative to GDP increased from 0.5 to 1.3 globally. Over the same period, the income share of the top 1% of the population also increased substantially. The growth of rentiers' wealth concentration has increased systemic financial risks and constrained monetary policy options for central banks.

1. Financial wealth, systemic risk
and captive monetary policy
worldwide
José L. Nicolini-Llosa and Ezequiel Guerra
Instituto de Investigaciones Económicas
Buenos Aires University

2. A Simple Model

3. A Simple Model (cont.)

4. Rentiers' Wealth and Income Share of Top 1% of the Population Worldwide

5. Rentiers' Wealth and Income Share of Top 1% of the Population Worldwide (cont.)

6. Rentiers' Wealth and Income Share of Top 1% of the Population Worldwide (cont.)

7. Rentiers Worldwide Wealth to GDP ratio and Top 1% Income
0.06
0.08
0.10
0.12
0.14
0.16
0.18
0.20
0.5
0.6
0.7
0.8
0.9
1.0
1.1
1.2
1.3
1.4
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Rentiers Wealth/GDP
Top 1% Income Share - Forecast
Top 1% Income Share - Actual Data
Source: Table 1