 The Jewel in the CrownImad A. Moosa
Chapter 5 in The Myth of Too Big to Fail, 2010, pp 81-108 from Palgrave Macmillan Abstract: Abstract Since the beginning of the 1980s, the financial sectors of most (actually, all) advanced countries have grown at a much faster pace than other sectors of the economy to grab an ever increasing share of GDP and total corporate profit. Indeed, the financial sector has become a world of its own, an entity that exists for its own sake, not for the purpose of supporting real economic activity (the production of goods and services that we need or want). It has become an end—not the means to achieve the end of lubricating economic activity by providing credit, liquidity and means of payment. The financial sector as a whole has become much larger than can be justified on the basis of its basic function of supporting real economic activity, perhaps too big for the good of the economy—or “too big for its boots”, as The Economist (2009f) puts it. And it has become the jewel in the crown of the economy. This is why some scholars use the term “financialization of the economy” (Metais, 2009). Keywords: Nobel Prize; Commercial Bank; Hedge Fund; Credit Default Swap; Dynamic Stochastic General Equilibrium (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:pmschp:978-0-230-29505-6_5 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Macmillan Studies in Banking and Financial Institutions from Palgrave Macmillan |
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