Too Much Finance? /

This paper examines whether there is a threshold above which financial development no longer has a positive effect on economic growth. We use different empirical approaches to show that there can indeed be "too much" finance. In particular, our results suggest that finance starts having a...

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Dettagli Bibliografici
Autore principale: Berkes, Enrico
Altri autori: Arcand, Jean-Louis, Panizza, Ugo
Natura: Periodico
Lingua:English
Pubblicazione: Washington, D.C. : International Monetary Fund, 2012.
Serie:IMF Working Papers; Working Paper ; No. 2012/161
Accesso online:Full text available on IMF
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245 1 0 |a Too Much Finance? /  |c Enrico Berkes, Ugo Panizza, Jean-Louis Arcand. 
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520 3 |a This paper examines whether there is a threshold above which financial development no longer has a positive effect on economic growth. We use different empirical approaches to show that there can indeed be "too much" finance. In particular, our results suggest that finance starts having a negative effect on output growth when credit to the private sector reaches 100% of GDP. We show that our results are consistent with the "vanishing effect" of financial development and that they are not driven by output volatility, banking crises, low institutional quality, or by differences in bank regulation and supervision. 
538 |a Mode of access: Internet 
700 1 |a Arcand, Jean-Louis. 
700 1 |a Panizza, Ugo. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2012/161 
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