It also generates awareness and willingness to approach the grievance redressal system available, in case of disputes. 7. At a macroeconomic level, the cost of financial illiteracy is significant and is manifested through scourges such as unemployment, poverty, high personal indebtedness and financial exploitation through mis-selling. It results in avoidable leakages and wastages, which any resource-scarce country can ill-afford.
But even apart from lag effects, as papers by Bill Poole (another Division of Research and Statistics staff member from those days), George de Menil (another Franco student), and Jerry Enzler show, our nonlinear Phillips Curves became very, very steep at low unemployment rates, implying that inflation would become uncontrollable at low unemployment rates.