Financial inclusion or access to financial services is a major development goal for all nations across the globe. The concept has a multitude of dimensions from payments and savings accounts, credit, insurance and pensions and securities market. Ensuring quality access to formal financial...

We propose a monetary dynamic general equilibrium model with endogenous credit market participation to study the impact of financial inclusion on welfare and inequality. We find that significant consumption inequality can result from limited access to basic financial services. In this...