The role of financial literacy Financial literacy and, in particular, financial education can affect the probability of mortgage defaults. Surveys of subprime mortgage borrowers in the US who took out loans pre-crisis show a large and statistically significant negative association between numerical ability and mortgage default (Gerardi, Goette, and Meier 2013).
Now and again one hears fears voiced, especially in the United States, about the potential threat the EMU poses for the global leadership role of the Bretton Woods institutions. I agree with those who urge reforms at the IMF and the World Bank.