The article "Inequality and Economic Growth: The Perspective of the New Growth Theories" by Philippe Aghion, Eve Caroli, and Cecilia García-Peñalosa reviews the literature on the relationship between inequality and economic growth. The authors argue that wealth inequality can be detrimental to growth, particularly in the presence of imperfect capital markets and heterogeneous agents. They also examine how economic growth affects wage inequality, finding that technical change is a major driver of wage inequality increases in the US and UK since the 1980s. The paper discusses the impact of international trade and organizational change on wage inequality, concluding that skill-biased technical change is a more significant factor. The authors explore the role of redistribution in fostering growth and question the traditional view that redistribution harms growth. They present a model where redistribution to the less endowed can enhance aggregate productivity and growth, especially in environments with imperfect capital markets. The paper also challenges the conventional trade-off between growth and social justice, suggesting that redistribution can have a positive effect on growth under certain conditions.The article "Inequality and Economic Growth: The Perspective of the New Growth Theories" by Philippe Aghion, Eve Caroli, and Cecilia García-Peñalosa reviews the literature on the relationship between inequality and economic growth. The authors argue that wealth inequality can be detrimental to growth, particularly in the presence of imperfect capital markets and heterogeneous agents. They also examine how economic growth affects wage inequality, finding that technical change is a major driver of wage inequality increases in the US and UK since the 1980s. The paper discusses the impact of international trade and organizational change on wage inequality, concluding that skill-biased technical change is a more significant factor. The authors explore the role of redistribution in fostering growth and question the traditional view that redistribution harms growth. They present a model where redistribution to the less endowed can enhance aggregate productivity and growth, especially in environments with imperfect capital markets. The paper also challenges the conventional trade-off between growth and social justice, suggesting that redistribution can have a positive effect on growth under certain conditions.