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Economic and Financial Climate Change: A Business Economist's Perspective

Economic and Financial Climate Change: A Business Economist's Perspective Abstract Over the past 50 years, one of the key elements of the evolution of the world economy has been the increasing complexity of financial transactions. This complexity is manifested in financial layering and disintermediation that has increased risk in the real as well as the financial sectors. The consequences of an adverse outcome of this risk are obvious in the current economic situation. This paper analyzes the imbalances that have arisen between the real and financial sectors and the consequences of the ballooning of the financial sector without producing positive contributions to the real sector and increasing risk to both. It calls for restraint on excesses of financial innovation and risk taking that cannot be held in check by market forces alone. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Business Economics Springer Journals

Economic and Financial Climate Change: A Business Economist's Perspective

Hughes-Cromwick, Ellen
Business Economics , Volume 44 (1): 6 – Jan 1, 2009
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Publisher
Springer Journals
Copyright
2009 Palgrave Macmillan
ISSN
0007-666X
eISSN
1554-432X
DOI
10.1057/be.2008.7
Publisher site
See Article on Publisher Site

Abstract

Abstract Over the past 50 years, one of the key elements of the evolution of the world economy has been the increasing complexity of financial transactions. This complexity is manifested in financial layering and disintermediation that has increased risk in the real as well as the financial sectors. The consequences of an adverse outcome of this risk are obvious in the current economic situation. This paper analyzes the imbalances that have arisen between the real and financial sectors and the consequences of the ballooning of the financial sector without producing positive contributions to the real sector and increasing risk to both. It calls for restraint on excesses of financial innovation and risk taking that cannot be held in check by market forces alone.

Journal

Business Economics – Springer Journals

Published: Jan 1, 2009

There are no references for this article.