The broader social purpose of finance

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Written by Thomas I. Palley

Financial markets have a broader social purpose that just the efficient allocation of capital on behalf of shareholders.  That broader purpose is to contribute to the delivery of "shared prosperity," which can be defined as full employment with rising incomes and contained income inequality. Today, we clearly do not have shared prosperity, and a big reason for that is the economic and political power of finance.

Thomas I. Palley, State of the World 2014, p.174.

 

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