Microfinance reduces the price of saving: even though microfinance savings groups yield a negative ~30% return, that is better than the minus-75-to-80% an individual faces alone, so the intervention makes saving cheaper rather than profitable.

causalpending

Speaker

Michael Munger

Evidence Quote

so far from having a positive rate of return they actually have a negative rate of return the thing is that without this intervention it would be even worse it might be minus 80 percent so we're allowing people to save at a less the price is less

Source

Mike Munger on Microfinance, Savings, and Poverty 04/18/2011EconTalk
Created: 6/17/2026, 10:29:24 AM

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