a column by Claudio Borio, Piti Disyatat, Mikael Juselius and Phurichai Rungcharoenkitkul for VOX: CEPR’s Policy Portal
Has the decline in real (inflation-adjusted) interest rates over the last 30 years been driven by variations in desired saving and investment, as commonly presumed?
And is this a useful way of thinking about the determination of real interest rates more generally, at least over long horizons?
This column finds that this is not the case by systematically examining the relationship between several saving-investment drivers and market real interest rates (as well as estimates of natural rates) since the 1870s and for 19 countries. By contrast, a clear and robust role for monetary policy regimes emerges. The analysis has significant implications for the notion of monetary neutrality and policymaking.
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Showing posts with label savings. Show all posts
Showing posts with label savings. Show all posts
Tuesday, 30 October 2018
Sunday, 6 May 2018
Saving from poverty: A critical review of Individual Development Accounts
an article by Guy Feldman (Tel Aviv University, Israel) published in Critical Social Policy Volume 38 Issue 2 (May 2018)
Abstract
The much-heralded anti-poverty strategy of asset-building has been adopted by many countries across the world. Asset-building programmes are designed to help low-income families achieve long-term financial stability through savings and asset accumulation.
This article offers a comprehensive and critical review of the current state of theory and research on asset-building programmes, with an emphasis on Individual Development Accounts (IDAs) in the United States.
Studies of IDAs have involved quantitative evaluations of the programme, focusing on three key topics:
On the basis of a careful review of these findings, it is argued that the claim that IDA programmes and asset-building in general have the potential to reduce poverty is overrated and premature (my bold).
The article builds on theoretical insights regarding the nature of neoliberalism to make sense of the picture portrayed in the research literature.
Abstract
The much-heralded anti-poverty strategy of asset-building has been adopted by many countries across the world. Asset-building programmes are designed to help low-income families achieve long-term financial stability through savings and asset accumulation.
This article offers a comprehensive and critical review of the current state of theory and research on asset-building programmes, with an emphasis on Individual Development Accounts (IDAs) in the United States.
Studies of IDAs have involved quantitative evaluations of the programme, focusing on three key topics:
- the programme’s effects on clients’ savings behaviour,
- its effects on clients’ outlook on life, and
- its long-term impact.
On the basis of a careful review of these findings, it is argued that the claim that IDA programmes and asset-building in general have the potential to reduce poverty is overrated and premature (my bold).
The article builds on theoretical insights regarding the nature of neoliberalism to make sense of the picture portrayed in the research literature.
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