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Kemp, M.H.D. (2016)How the financial system helps society innovate and develophere

First paragraphs

"It is easy to be gloomy about the contribution of the financial system to society in the aftermath of the 2008 global financial crisis and the subsequent eurozone sovereign debt crisis. Governments wrote very large cheques to ensure that the financial system did not freeze up. Some countries’ financial systems, indeed their state finances as a whole, buckled. Quantitative easing and other unconventional monetary policies were adopted, to try to get economies working more productively. These policies have brought new challenges, such as negative interest rates, which have the potential to disrupt the financial health of life insurers, pension funds and other parts of the financial system that weren’t initially too affected by the global financial crisis.

However, a different picture emerges if we adopt a longer term perspective. In this note I want to present the positives that the financial system has brought to society, and the innovations and developments it has fostered."


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