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on Financial Literacy and Education |
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Issue of 2018‒11‒19
two papers chosen by |
| By: | Dina Tasneem; Audrey Azerot; Marine de Montaignac; Jim Engle-Warnick |
| Abstract: | We report results from an economics experiment that examines the role of financial literacy in retirement savings. In the experiments, participants make decisions in a retirement savings game, in which income during working years is uncertain. Participants are nudged to varying degrees with automatic savings in each period of the game. Some participants receive financial literacy training in the form of training to compute the expected savings needed at retirement to smooth consumption over the entire life cycle. We find ev-idence that literacy increases savings and improves efficiency. Our finding has implications for choice architecture for retirement savings. |
| Keywords: | Precautionary Savings,Retirement Savings,Life-cycle Model,Dynamic Optimization,Nudge,Financial Literacy,Decision Heuristics, |
| JEL: | C90 |
| Date: | 2018–07–30 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2018s-24&r=fle |
| By: | Muhammad Omer (State Bank of Pakistan) |
| Abstract: | This study investigates the comparative pass-through of policy rate to the retail prices, spillover of prices between Islamic and conventional banking systems, and the impact of excess liquidity on these pass-throughs using data from interbank market of Pakistan. The results suggest that the monetary policy shock affect retail prices of Islamic banks similar to conventional banks, confirming the findings of earlier studies. Moreover, there is a strong spillover between the prices of two systems; Islamic banks are following (leading) the conventional banks in pricing the lending (deposit) products. Islamic bank have acquired advantage in the deposit pricing by taping the religious depositors, which also has promoted financial inclusion in the economy. Our results suggest that the presence of excess liquidity have no effect on pass-through of policy rate in the Islamic system, which is contrary to the prevalent notion. However, excess liquidity significantly affects the spillovers of prices between the systems. These results support the hypothesis that the Islamic banks are investing in government securities indirectly via conventional banks. |
| Keywords: | Excess Liquidity, Islamic Banks, Monetary Policy Pass-through, VECM, Mediation |
| JEL: | C43 E31 F41 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:sbp:wpaper:100&r=fle |