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Skip to main content The Federal Reserve, the central bank of the United States, provides the nation with a safe, flexible, and stable monetary and financial system. Sections Search Search Submit Button
An expansion of the federal Pell Grant programme – the largest US scholarship programme that helps lower-income students attend college – has recently been proposed. This column shows that, besides the long-run benefits of making college more affordable, Pell Grants significantly raise local economic activity. Local income rises by 2.4% when Pell Grants increase by 1% of income, far exceeding the effect of, for example, defence spending.
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