Silent Inflation


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Inflation targeting by the Central Bank might have some unintended consequences.

But reducing uncertainty about prices by keeping the inflation target at 2% or more might actually increase a sense of uncertainty about real things like home values or investments. While it is right to worry about massive deflation, the historical relationship between deflation and recession is not all that strong. In a 2004 paper, the economists Andrew Atkeson and Patrick Kehoe concluded that most of the evidence of a relationship comes from just one case: the Great Depression of the 1930s.

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Robert J. Shiller — Project Syndicate

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The Value of Measuring Financial Inclusion


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On the importance of measuring financial inclusion.

The latest Global Findex report informs us that 515 million individuals opened a “bank account” at a traditional financial institution or through a mobile money provider between 2014 and 2017. As a result, 69% of adults worldwide now have bank accounts, up from 62% in 2014 and 51% in 2011. This rise in financial inclusion is welcome news, not least because, in the event of a downward income shock, a household’s consumption will fall much less if it is linked to the formal financial sector.

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Kaushik Basu — Project Syndicate

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Why Haven’t We Ended Polio?


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Although, the fight against polio seems to be in its last leg, we have not been able to eradicate it 100%. Today’s needull looks at the reasons.

To be sure, there have been some successes, such as in India, which was certified polio-free in 2014, and in Nigeria, which interrupted transmission the same year. But there have also been setbacks: in 2016, Nigeria suddenly had two new cases among children from an area that had just been liberated from the militant group Boko Haram.

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Project Syndicate

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