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by ldayley
5104 days ago
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The paper linked in the article also indicates that it isn't exclusively about talent, but that scarce capital can also be misallocated towards the financial sector during financial booms: "Second, we note that finance requires financing. That is, financial intermediaries compete
with non-financial intermediaries for financial resources. This leads us to conjecture that firms
that rely more heavily on external finance will be in more direct competition with the financial
intermediaries themselves for resources." ( from http://sirc.rbi.org.in/downloads/4Cecchetti.pdf ) |
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