Making Finance Serve the Real Economy

Abstract

In the wake of the financial crisis of 2008, financial sector reform has been a major policy focus around the world. However, that focus has been almost exclusively on the issue of “stability” and preventing a repeat of the crisis. There has been little debate about the broader role of finance in shaping economic developments over the past 30 years, and inadequate attention is given to the challenges of how to remedy the massive economic inequities and problems relating to unemployment and growing indebtedness of many households.