Finance and Growth: What we Know and What we Need to Know

In modern economies finance underpins virtually every economic transaction that takes place. When we go to the supermarket, we usually pay using credit or debit cards issued by commercial banks (or the supermarkets themselves). Even when we pay using cash, we have to first find an ATM in order to withdraw the necessary bank notes. The banking system, which includes commercial banks as well as the central bank (the Bank of England in the UK), provides the payments system which makes economic exchange possible. It is hard to imagine what economies would look like without ‘money’–broadly defined as anything that is used in exchange for goods and services and the settlement of debt. Besides providing the means of payment, which underpins all economic transactions, the financial system provides a link between current and future output and consumption. When we borrow from a bank to buy a car, we are essentially bringing forward consumption against future income. This is made possible because financial intermediaries, like banks, raise funds from surplus units (those economic agents whose income is greater than their current expenditure) and pass them on as loans to deficit units (those economi

Financial development and economic growth in Vietnam

Financial Development, Economic Growth, Globalization, Vietnam, F20, O11, O16,

Roles played by financial development in economic growth: application of the flexible regression model

Banking development, Economic growth, Stock market development, Flexible nonlinear estimation, E44, G10, O16, O50,