Can removing names from loan applications help to reduce racial discrimination in lending? Our recent research suggests that it can. Analyzing a unique experiment at a leading fintech platform in Singapore, we find that anonymizing loan applications substantially reduced racial disparities in both loan approvals and terms. After anonymization, high-income minorities benefited more than low-income minorities, […]
As climate-related disasters become increasingly frequent and destructive, one might expect first-hand experience of these events to bring consensus on the urgency of addressing climate change. Yet, the deep ideological divide on this issue in the US and beyond – combined with highly polarised media coverage – may hinder this process. Combining data on the […]
Negative economic shocks can cause waves of investor pessimism about the resilience of banks, which in turn generate additional adverse macroeconomic effects. This column introduces the notion of pessimism in a real business cycle model. The possibility of waves of pessimism generates countercyclical demand from banks for liquid assets, such as bank reserves. Applying the […]