How effectively institutions manage their risks and allocate their capital will have substantial consequences for economic growth. We have seen significant progress in measuring market risk, and the groundwork is being laid for future gains in measuring credit risk, but those are only two risks.
As I noted earlier, the linkage between education and economic opportunity is typically measured by the relationship between education and earnings. Earnings are an important measure of one's success in the labor market, but broader measures of income and ultimately net worth are even more significant yardsticks for gauging the financial health of households.