Why and when financial instruments are created: a learning story

Ana Fernandes

Journal of Financial Transformation, 2006, vol. 18, 24-28

Abstract: The relationship between financial development and growth has been the subject of intense scrutiny. Economists debate whether finance causes growth [Hicks (1969), Schumpeter (1934)], or whether it is growth that triggers the development of financial markets [Robinson (1952)]. This paper proposes the view that financial development arises as a response to the contractual needs of emerging technologies. Exogenous technological progress generates a derived demand for new financial instruments that facilitate the adoption of the new technologies; those instruments may help investors share risk or overcome private information issues, for example.

Keywords: Technology adoption; financial innovation; learning (search for similar items in EconPapers)
JEL-codes: G20 N20 O30 (search for similar items in EconPapers)
Date: 2006
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:jofitr:0926

Access Statistics for this article

Journal of Financial Transformation is currently edited by Prof. Shahin Shojai

More articles in Journal of Financial Transformation from Capco Institute 77 Water Street, 10th Floor, New York NY 10005.
Bibliographic data for series maintained by Prof. Shahin Shojai ( this e-mail address is bad, please contact ).