Stop Investing in Stadiums...Start Investing in Kids

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Educating people may not sound terribly urgent during difficult economic times, but when it comes to creating jobs and finding people who have the skills to fill them, nothing is more important than education. The latest issue of Forefront, the Federal Reserve Bank of Cleveland's policy publication, presents a package of articles focused on the compelling returns to education.

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When it comes to creating jobs and finding people who have the skills to fill them, nothing is more important than education, says Federal Reserve Bank of Cleveland President Sandra Pianalto in the most recent issue of Forefront, the Bank's policy publication, which presents a package of articles focused on returns to education.

"Stop Investing in Stadiums...Start Investing in Kids," contains highlights from an interview with researcher Art Rolnick, who argues that one kind of economic development is uniquely effective -- early childhood education. Rolnick, a former research director at the Federal Reserve Bank of Minneapolis, is testing his ideas with a pilot project that provides scholarships and mentors to families living in poverty so they can send their children to high-quality preschools. Rolnick says research shows that the annual (inflation-adjusted) returns to investments in early childhood education are as much as 16 percent, and he challenges policymakers to find a better public investment.

Forefront also takes a look at consumer financial education, and the effectiveness of mortgage counseling in helping borrowers navigate the homebuying process.

Rounding out the issue is an interview with economist Laurence Meyer who talks about the financial crisis, asset bubbles, economic forecasting, and modern macroeconomics.

Contact: Anne M. DiTeodoro, 216.774.2514

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