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Is cash the best way to help the poor? (Michael Faye)

Rationally Speaking Podcast

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The Positive Spell Over of Inflation

When you give money to a place, either prices could go up and there's no real change in the economy. In that study, they actually gave a really large amount of money. So i think it was about 15 % of g d p that they dropped on the village. And i forget the exact a price impact, but it was tiny. Thats surprising. T i think it depends. If you told me to design a cash project to create inflation, i'm sure i could do it. But the places we're working, even though they're extremely poor, dyo, seem to have some slack capacity where you don't see that inflation. It's something to keep an eye

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