Robert Gebelhoff writes for The Washington Post about a study by Prof. Tavneet Suri that shows mobile-money services helped reduce poverty in Kenya. The study “offers good evidence that having a place to put money that’s safe and easily accessible can make the lives of poor people considerably more efficient than cash-reliant economies,” Gebelhoff explains.
Nurith Aizenman reports for NPR on a new study that shows mobile banking can help lift people out of poverty. Prof. Tavneet Suri says she was “blown away” by the study’s results, which showed that women-led families with access to mobile-money services, “set aside 22 percent more in savings between 2008 and 2014.”
Popular Science reporter Kate Baggaley writes that a new study by MIT researchers shows that mobile money services helped two percent of households in Kenya rise out of poverty. “Women especially have benefitted from the spread of mobile money, which has helped many move from farming into business,” writes Baggaley.
Prof. Tavneet Suri has found that mobile money services helped lift almost 200,000 Kenyan households, many headed by women, out of poverty, reports Neda Wadekar for Reuters. Suri explains that when mobile payment systems “came to an area, women shifted their occupations and their savings went up."
Writing for the Financial Times, Prof. Daron Acemoglu examines how a new administration in Washington, D.C. could impact Turkey’s growth. While the implications “are likely to be dire for the Turkish economy,” Acemoglu adds that “even modest attempts towards a more inclusive economy can spearhead rapid and relatively high-quality growth.”
Writing for The Wall Street Journal, Senior Lecturer Robert Pozen argues that index stock options are the best way to ensure CEOs are paid based on their performance. “Indexed options are designed to reward managerial skill instead of fortuitous movements of the stock market,” he writes, citing Prof. Bengt Holmstrom’s Nobel-prize winning research on incentives.
Prof. Antoinette Schoar writes for The Wall Street Journal about her research examining the quality of advice financial advisors provide to their clients. Schoar writes that her research has shown that “holding financial advisers to higher fiduciary standards is not only good consumer financial protection but is also good market economics.”
Senior lecturer Robert Pozen writes for The Financial Times about the new money market (mm) reforms. Pozen argues that “in 2017, the SEC should re-consider its new rules on institutional MM funds in light of the actual rise in borrowing costs for banks, companies and local governments.”
Jericka Duncan of CBS Evening News speaks with Prof. Antoinette Schoar about her research investigating how credit card companies target consumers based, in part, on their level of education. “Customers who are more educated and financially more sophisticated receive very different credit terms,” she explains.
Prof. Antoinette Schoar writes for The Wall Street Journal about her research examining how credit card companies are using customer data to target specific consumers. Schoar writes that “as more and more personal data becomes available, businesses are now able to target customers in a personalized and sophisticated way.”
MIT has been named the top university in the world in the latest QS World University Rankings, reports Nick Morrison for Forbes. This is the fifth consecutive year that MIT has earned the number one spot in the QS rankings.
Prof. Ricardo Caballero and his colleagues have found that due to the integrated nature of the world’s financial markets, “a slump in some economies can eventually engulf all of them.” The Economist notes that the researchers found “once a few economies become stuck in the zero-rate trap, their current-account surpluses exert a pull which threatens to drag in everyone else.”
Prof. Andrew Lo writes for The Wall Street Journal that robo advisors could prove helpful to investors if they are able to assist with managing emotions. “Instead of artificial intelligence, we should first conquer artificial emotion—by constructing algorithms that accurately capture human behavior, we can build countermeasures to protect us from ourselves."
Prof. David Singer weighs in on the Federal Reserve’s decision to raise its target interest rate in this article for The Conversation. Singer writes that, “a less appreciated facet of liftoff is that the Fed’s balance sheet is now so large that raising interest rates is logistically and mechanically challenging.”
Financial Times reporter Rebecca Knight discusses MIT Sloan’s Master of Finance program and how to be a successful asset manager with Senior Lecturer Gita Rao. “It takes an incredible focus,” says Rao. “You have to be very decisive [and] you have to be an independent thinker.”