- There is a remarkable correlation between the size of the financial sector and the rate of productivity growth.
- According to the BIS, there is causation, a bigger financial sector tends to have a negative impact on real economic growth.
- So the growing size of the financial sector provides another possible explanation for ‘secular stagnation.’.
A Big Financial Sector Hurts Economic Growth | Seeking Alpha
April 27th, 2015 · No Comments
Tags: Financial regulation