Robin Greenwood and David Scharfstein: The Growth of Modern Finance: "The U.S. financial services industry grew from 4.9% of GDP in 1980 to 7.9% of GDP in 2007. A sizeable portion of the growth can be explained by rising asset management fees, which in turn were driven by increases in the valuation of tradable assets, particularly equity. Another important factor was growth in fees associated with an expansion in household credit, particularly fees associated with residential mortgages. This expansion was itself fueled by the development of non-bank credit intermediation (or “shadow banking”). We offer a preliminary assessment of whether the growth of active asset management, household credit, and shadow banking – the main areas of growth in the financial sector – has been socially beneficial."
Brad DeLong: Japanese Convergence and Non-Convergence and the Financial Crisis of the Early 1990s
Liaquat Ahmed: Timothy Geithner On Populism, Paul Ryan, And His Legacy
- BRAD DELONG : THE SIMPLE ARITHMETIC OF FISCAL POLICY IN A DEPRESSED ECONOMY: A STRIPPED-DOWN FORMULATION
- Brad DeLong : Will Gary Becker Please Return from the Gamma Quadrant?
- Brad DeLong : DeLong Smackdown Watch (Slope-of-the-LM-Curve Edition)
- Brad DeLong : Japanese Convergence and Non-Convergence and the Financial Crisis of the Early 1990s
- Brad DeLong : The Future of American Political Economy: Deficits-and-Debts the Very Thoughtful Ezra Klein Gets One Wrong, I Think, Weblogging
