Too Much Finance?

Click here for a post by J. Bradford DeLong, where he argues that too much finance can be bad for economic growth. Although I might have a vested interest in making a counter argument, I actually believe that Brad DeLong might be correct. For sure, financial deepening has been an important driver of economic growth over the past two centuries (see here and here), but maybe the relationship between financial development and economic growth is an inverted U shaped and we are now on a downwards slope!

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