The Economics of Microfinance

A great place to learn how and why microfinance really works, and where it hits its limits. The book, written by two leading young economists, brims with new evidence and provides fresh perspectives on old debates. Clearly written and sharply argued, it revisits and transforms important ideas about poverty reduction, finance, and incentives. The authors describe what we know and what we need to know in order to move forward.

Joseph E. Stiglitz, Professor of Economics and Finance, Columbia University, Nobel Laureate in Economics

The microfinance movement is bringing hope, prosperity, and progress to many of the poorest people in the world. It is necessary to use critical economic reasoning to understand why the movement is such a success and how its exact achievements can be assessed and scrutinized. This book is a splendid contribution to that goal, and will be a great help to students, teachers, and practitioners in economics and the social sciences.

Amartya Sen, Lamont University Professor, Harvard University, Nobel Laureate in Economics

This is an important book by two of the leading economists in microfinance, detailing what we know and don't know about the subject. It is an accessible book laden with examples, but it doesn't sacrifice intellectual rigor. It should be of great interest to students, researchers, and practitioners with an analytical bent.

Raghuram G. Rajan, International Monetary Fund

The promotion of microfinance is one of the most significant innovations in development policy of the past twenty-five years. This timely book provides a guide to its main ideas and reviews the evidence in a way that is both accessible and rigorous. It will be a valuable resource for students, researchers and practitioners.

Timothy Besley, Professor of Economics and Political Science, London School of Economics and Political Science

Microfinance is playing a key role in the economies of many developing countries, providing small-scale entrepreneurs with theaccess to financing that is so often unavailable from commercial and state banks. This book provides an accessible, analytical roadmap for understanding this important trend. The authors tackle central debates and provide new evidence, giving readers tools to create future innovations.

George Soros, Founder and Chairman, Open Society Institute