Trust,Financial Regulation,and Growth |
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| Authors: | Forrest Capie |
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| Affiliation: | City UniversityRevised version of the 2014 Noel Butlin Lecture, delivered at the Asia‐Pacific Economic and Business History Conference, University of Waikato. |
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| Abstract: | Money and financial intermediation are important elements in economic growth. Both depend heavily on trust for their efficient working. In the second half of the twentieth century, trust was eroded and even broke down. Regulation replaced it. The welfare costs grew, and economic growth was damaged. The opposite happened in the move from mercantilism in the eighteenth century to small government and sound money in the nineteenth century. Growth was improved. Perhaps trust can be restored again. |
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| Keywords: | N10 N20 N40 economic growth finance regulation trust |
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