The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Capital, Credit and Money Markets

  • Benjamin M. Friedman
Reference work entry


The markets for money, credit and capital represent a fundamental dimension of economic activity, in that the many and varied functions of the modern economy’s financial markets both reflect and help shape the course of the economic system at large. Financial markets facilitate such central economic actions as producing and trading, earning and spending, saving and investing, accumulating and retiring, transferring and bequeathing. Development of the financial system is a recognized hallmark of economic development in the broadest sense.

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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Benjamin M. Friedman
    • 1
  1. 1.