Most of our credit system does not support economic growth in the sense of supporting transactions in goods and services,” he explains. “Most of our finance system, most bank loans, support increased asset prices, which have a number of detrimental effects on the economy.”

"The threat to growth today is not a shrinking of the financial sector, but it enormous size.”

Must-read article on the web site of the Institute for New Economic Thinking underlining the need for a radical reform of the financial sector.