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Financial Literacy and Macro-economics

Author

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  • Béres, Dániel
  • Huzdik, Katalin

Abstract

Financial literacy, moving to the forefront on account of the economic crisis, is a crucial element of the proper function-ing of any society. Our goal is to identify the indicators of financial literacy in topic-related Hungarian and international literature which can then be used to draw macro-economic conclusions and be tested through Hungary’s example. We have identified four main indicators, which are: (1) income, (2) savings, (3) external funds (loans) and (4) the economy’s demand for cash. A number of criticisms can be raised in connection with the above indicators, most importantly the fact that the perception of financial litera-cy is overly linked to income. In spite of this, all these indicators are conducive to providing information on one of the financial lit-eracy-related issues (self-provision, confidence, planning, long-term thinking, profitability, etc.).

Suggested Citation

  • Béres, Dániel & Huzdik, Katalin, 2012. "Financial Literacy and Macro-economics," Public Finance Quarterly, Corvinus University of Budapest, vol. 57(3), pages 298-312.
    • Handle: RePEc:pfq:journl:v:57:y:2012:i:3:p:298-312
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    File URL: https://unipub.lib.uni-corvinus.hu/8979/
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    References listed on IDEAS

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    1. Veronica Guerrieri & Guido Lorenzoni, 2017. "Credit Crises, Precautionary Savings, and the Liquidity Trap," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 132(3), pages 1427-1467.
    2. Diana J. Beal & Sarath B. Delpachitra, 2003. "Financial Literacy Among Australian University Students," Economic Papers, The Economic Society of Australia, vol. 22(1), pages 65-78, March.
    3. Lusardi, Annamaria & Mitchell, Olivia S., 2007. "Baby Boomer retirement security: The roles of planning, financial literacy, and housing wealth," Journal of Monetary Economics, Elsevier, vol. 54(1), pages 205-224, January.
    4. Angela Hung & Andrew Parker & Joanne K. Yoong, 2009. "Defining and Measuring Financial Literacy," Working Papers 708, RAND Corporation.
    5. Angela A. Hung & Andrew M. Parker & Joanne K. Yoong, 2009. "Defining and Measuring Financial Literacy," Working Papers WR-708, RAND Corporation.
    6. Klapper, Leora & Lusardi, Annamaria & Panos, Georgios A., 2012. "Financial literacy and the financial crisis," Policy Research Working Paper Series 5980, The World Bank.
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    Cited by:

    1. Zsótér, Boglárka, 2018. "Examining the Financial Literacy of Young Adults – The Correlations of Time Perspective, Financial Well-Being and Delay of Gratification," Public Finance Quarterly, Corvinus University of Budapest, vol. 63(1), pages 39-54.
    2. Garai-Fodor, Mónika & Csiszárik-Kocsir, Ágnes, 2018. "Validity of value-based consumer behaviour models in terms of the financial awareness of Generations Z and Y," Public Finance Quarterly, Corvinus University of Budapest, vol. 63(4), pages 511-529.
    3. Győri, Ágnes & Czakó, Ágnes, 2018. "Some Features of Hungarian Financial Literacy in the Light of the Economic Behaviour of Small and Medium-sized Enterprises," Public Finance Quarterly, Corvinus University of Budapest, vol. 63(2), pages 235-253.

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    More about this item

    Keywords

    financial literacy; indicator; macro-economics;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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