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Tag Archives: inequality

Unequal Burdens: Racial Differences in ICU Stress during the Third Wave of COVID-19

Ruchi Avtar, Rajashri Chakrabarti, and Maxim Pinkovskiy A critical risk during the COVID-19 pandemic has been the possibility of the hospital system becoming overwhelmed. COVID-19 not only has killed nearly 2 percent of people with confirmed infections but causes many more who contract it to develop severe complications that are potentially fatal if not treated in an intensive care unit (ICU). As ICU capacity is based on typical needs for intensive care before the pandemic, a surge of...

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Chart of the WeekCould Renewed Social Unrest Hinder the Recovery?

By Metodij Hadzi-Vaskov, Samuel Pienknagura, and Luca Ricci Protests driven by the pandemic’s economic fallout are on the rise, with potentially long-lasting economic consequences. Protests can be catalysts for political reform and social change. But what impact do they have on the economy? According to the latest Global Peace Index, the number of riots, general strikes and anti-government demonstrations around the world have increased by a staggering 244 percent in the last decade....

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Credit, Income, and Inequality

Manthos Delis, Fulvia Fringuellotti, and Steven Ongena Access to credit plays a central role in shaping economic opportunities of households and businesses. Access to credit also plays a crucial role in helping an economy successfully exit from the pandemic doldrums. The ability to get a loan may allow individuals to purchase a home, invest in education and training, or start and then expand a business. Hence access to credit has important implications for upward mobility and...

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Banking the Unbanked: The Past and Future of the Free Checking Account

Stein Berre, Kristian Blickle, and Rajashri Chakrabarti About one in twenty American households are unbanked (meaning they do not have a demand deposit or checking account) and many more are underbanked (meaning they do not have the range of bank-provided financial services they need). Unbanked and underbanked households are more likely to be lower-income households and households of color. Inadequate access to financial services pushes the unbanked to use high-cost alternatives for...

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Banking the Unbanked: The Past and Future of the Free Checking Account

Stein Berre, Kristian Blickle, and Rajashri Chakrabarti About one in twenty American households are unbanked (meaning they do not have a demand deposit or checking account) and many more are underbanked (meaning they do not have the range of bank-provided financial services they need). Unbanked and underbanked households are more likely to be lower-income households and households of color. Inadequate access to financial services pushes the unbanked to use high-cost alternatives for...

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The Next Move: Consequences for Emerging Markets

By Gita Bhatt We focus this issue of Finance & Development on the road ahead for emerging markets, a label frequently applied to economies in the middle—neither advanced nor low-income. Because of their growing systemic relevance, this group of countries helps anchor global stability. Yet, as we drill down and define their characteristics, we find a widely diverse set of economies of varying sizes and growth rates that face different prospects, priorities, and challenges. Some, like...

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Who Benefited from PPP Loans by Fintech Lenders?

Jessica Battisto, Nathan Godin, Claire Kramer Mills, and Asani Sarkar In the previous post, we discussed inequalities in access to credit from the Paycheck Protection Program (PPP), showing that, although fintech lenders had a small share of total PPP loan volumes, they provided important support for underserved borrowers. In this post, we ask whether smaller firms received the amount of PPP credit that they requested, and whether loans went to the hardest-hit areas and mitigated job losses....

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Who Received PPP Loans by Fintech Lenders?

Jessica Battisto, Nathan Godin, Claire Kramer Mills, and Asani Sarkar Small businesses not only account for 47 percent of U.S employment but also provide a pathway to success for minorities and women. During the coronavirus pandemic, these small businesses—especially those owned by minorities—were hard hit as consumers reduced spending disproportionately on services that require in-person physical interaction, such as hotels and restaurants. In response, the U.S. government launched the...

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What Happens during Mortgage Forbearance?

Andrew Haughwout, Donghoon Lee, Joelle Scally, and Wilbert van der Klaauw As we discussed in our previous post, millions of mortgage borrowers have entered forbearance since the beginning of the pandemic, and more than 2 million remain in a program as of March 2021. In this post, we use our Consumer Credit Panel (CCP) data to examine borrower behavior while in forbearance. The credit bureau data are ideal for this purpose because they allow us to follow borrowers...

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