Financial Systems and Economic Growth

Throughout much of the twentieth century economists paid little heed to the role of financial intermediaries in procuring a beneficial allocation of capital. By the end of the century however some financial historians had begun to turn the tide and the phrase ''finance-growth nexus'' became part of the lexicon of modern economics. Recent experience has added another dimension in that countries with broader deeper and more active financial systems might be prone to financial crises particularly if regulatory structures are inadequate. In this book Peter L. Rousseau and Paul Wachtel have gathered together some of today''s most distinguished financial historians to examine this finance-growth nexus from both historical and modern perspectives. Some essays examine the nexus in a particular historical or cross-country context. Others in the light of recent experience explore the expanded nexus of finance growth crises and regulation.