Metamorphoses: the relationship between banking and economic modernisation in post-World War II France
György Kovács and
László Bartók
Public Finance Quarterly, 2024, vol. 70, issue 2, 30-62
Abstract:
After World War II, France’s economic growth was the strongest in its history and the country broke out from the trap of middle-income countries. The “thirty glorious years” was accompanied by the modernization of the economy, in which a strong state control banking system, called the goal-oriented banking system, played a significant role. Through the transformation of the French banking system after World War II, we prove that in the case of a middle-income country, the deepening of the financial intermediary system promotes the modernization of the economy. On the other hand, after a while the too strong state regulation on the banking system will become a limitation because the financial system cannot fulfill its task of economic modernization, as state intervention will limit the deepening of financial intermediation and thus the further modernization of the economy. Finally, we will also examine whether the actors of the financed industries become “lazier” due to the active state intervention in the lending policy, which brings with it the issue of moral hazard.
Keywords: banking system; financial policy; monetary policy; economic development (search for similar items in EconPapers)
JEL-codes: G21 N13 N24 O16 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:
Downloads: (external link)
https://unipub.lib.uni-corvinus.hu/10185/ (application/pdf)
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:pfq:journl:v:70:y:2024:i:2:p:30-62
DOI: 10.35551/PFQ_2024_2_2
Access Statistics for this article
More articles in Public Finance Quarterly from Corvinus University of Budapest Contact information at EDIRC.
Bibliographic data for series maintained by Adam Hoffmann ().