As the coronavirus crisis speeds up economic, political and social decoupling, here’s what central banks should ponder

The Covid-19 crisis has accelerated a number of transformations around the world that were already happening before the pandemic struck. These can be summarised as three “decouplings”. The first is a decoupling between the rich and poor. The share of income of the top 1 per cent of the US population has doubled, from 10 per cent to 20 per cent, since the 1970s, while the share of the bottom 50 per cent has declined from 20 per cent to 12 per cent. Europe saw a similar trend of widening income…

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