Expert Focus

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Karel Mertens, London School of Economics: Monetary Economics, Belgium

I believe Monetary Economics  is related in at least three ways to development:

1. One of the major impediments to development is the occurrence of financial crises and the lack of a stable monetary environment. The most important way to development is trade and without credible money, trade is restricted considerably.

2. The construction of monetary unions could be an important way to development.

3. There is empirical evidence that stable and low inflation reduces poverty and income inequality.

Cheers,
Karel