Financial Literacy and Economic Outcomes:Evidence and Policy Implications

Financial Literacy and Economic Outcomes: Evidence and Policy Implications.

This paper reviews what we have learned over the past decade about financial literacy and its relationship to financial decision-making around the world. Using three questions, we have surveyed people in several countries to determine whether they have the fundamental knowledge of economics and finance needed to function as effective decision-makers. We find that levels of financial literacy ar...

Financial Literacy, Financial Education and Economic Outcomes.

In this article we review the literature on financial literacy, financial education, and consumer financial outcomes. We consider how financial literacy is measured in the current literature, and examine how well the existing literature addresses whether financial education improves financial literacy or personal financial outcomes. We discuss the extent to which a competitive market provides i...

The Economic Importance of Financial Literacy: Theory and Evidence.

This paper undertakes an assessment of a rapidly growing body of economic research on financial literacy. We start with an overview of theoretical research which casts financial knowledge as a form of investment in human capital. Endogenizing financial knowledge has important implications for welfare as well as policies intended to enhance levels of financial knowledge in the larger population....

The Economic Benefits of Literacy: Evidence and Implications for Public Policy

Foreign Trade and International Financial Flows: Implications for Economic Stability in the Selected ECOWAS Countries

T his study investigates the effects of extra-ECOWAS merchandise trade and investment flows on the transmission of business cycles in the selected ECOWAS between 1985 and 2014.  The study finds that total trade and foreign direct investment (FDI) significantly influence the transmission of business cycles with elasticities of 1.1 and 0.7, respectively in the long run. There are little vari...