An important link was established from financial inclusion to education of children – from micro finance for women entrepreneurs to them sending children to schools, the children in turn having their “Aha! I did it! !” moments in reading and counting, and to their taking off for the limitless sky and beyond. Access to finance is the lifeblood of an economy.
And this demand for reserves is contributing to a shortage of reserve assets, which may be reinforcing the decline in the neutral rate of interest. This in turn raises the risk of liquidity traps and can lead to the buildup of financial vulnerabilities everywhere. Turning to longer-run challenges, there are several.