of conditions, inequality in general is not positively correlated with economic growth and, under some conditions, shows a negative correlation with economic growth. Milanovic (2011) points out that overall, global inequality between countries is more important to growth of the world economy than inequality within countries. While global economic growth may be a policy priority, recent evidence about regional and national inequalities cannot be dismissed when more local economic growth is a policy objective. The 2008 financial crisis and following global recession hit countries and shook financial systems all over the world. This led to the implementation of large-scale fiscal expansionary interventions and, as a result, to massive public debt issuance in some countries. Governmental bailouts of the banking system further burdened fiscal balances and raises considerable concern about the fiscal solvency of some countries. Most governments want to keep deficits under control but rolling back the expansionary measures or cutting spending and raising taxes implies an enormous wealth transfer from tax payers to the private financial sector. Expansionary fiscal policies shift resources and causes worries about growing inequality within countries. Moreover, recent data confirm an ongoing trend of increasing income inequality since the early nineties. Increasing inequality within countries has been accompanied by a redistribution of economic resources between developed economies and emerging markets. Davtyn, et al. (2014) studied the interaction of these fiscal conditions and changes in fiscal and economic policies with income inequality in the UK, Canada, and the US. They find income inequality has negative effect on economic growth in the case of the UK but a positive effect in the cases of the US and Canada. Income inequality generally reduces government net lending/borrowing for all the countries. Economic growth, they find, leads to an increase of income inequality in the case of the UK and to the decline of inequality in the cases of the US and Canada. At the same time, economic growth improves government net lending/borrowing in all the countries. Government spending leads to the decline in inequality in the UK but to its increase in the US and Canada. Following the results of Alesina and Rodrick (1994), Bourguignon (2004), and Birdsall (2005) show that developing countries with high inequality tend to grow more slowly, Ortiz and Cummings (2011) show that developing countries with high inequality tend to grow more slowly. For 131 countries for which they could estimate the change in Gini