As COVID-19 struck in early 2020, governments across Latin America and the Caribbean moved decisively through transfers, credits and other means to shore up their economies and support families and firms. That swift governmental action did much to alleviate suffering. But in the midst of falling revenues, fiscal deficits increased substantially, rising on average from 3.4% of … [Read more...] about Preserving Public Investment During Fiscal Adjustments
Employing Information to Boost Citizen Trust and Welfare
For democracy to function and economies prosper, people need to believe that their fellow citizens are trustworthy: that they are well intentioned, will honor commitments and will not take advantage of them. When people have little to no information about others, it is difficult to believe that. The fact that Latin America and the Caribbean has the lowest rates of trust in … [Read more...] about Employing Information to Boost Citizen Trust and Welfare
How Education Protects Workers During Recessions
Education has long been considered a bulwark in hard times. Now new research shows that acquiring additional years of schooling can help prevent people from losing their jobs during economic downturns or recessions. But what makes acquiring education protective? Does it increase productivity? Does it enable workers to work in recession-proof sectors? Or does the economic … [Read more...] about How Education Protects Workers During Recessions
Why Chileans Brought Money Home While Colombians Sent It Abroad in 2020
Chile and Colombia are two of the most solid economies in Latin America and the Caribbean. While in 2020 they contracted 5.8% and 6.8%, respectively, they were among the strongest performers in the region amid difficult circumstances. Both are open market economies, with flexible exchange rates and access to foreign markets. They also have faced social unrest and protest … [Read more...] about Why Chileans Brought Money Home While Colombians Sent It Abroad in 2020
The Free Online Behavioral Economics Course Is Going Strong. Have You Taken It?
How do people make decisions? How does behavior affect public policies? And can policymakers nudge people into doing things that will benefit them and society at large? Many issues related to the success of public policies come down to a, sometimes understudied, factor: human behavior. In our Behavioral Economics for Better Public Policies course, we focus on that fundamental … [Read more...] about The Free Online Behavioral Economics Course Is Going Strong. Have You Taken It?