Countries whose economies are dominated by large financial centres suffer a “Finance Curse” that is rather similar in cause and effect to a “Resource Curse” that afflicts many countries whose economies are dominated by large oil industries or other natural resources sectors. Britain and the United States are classic cases, and a lot of the inequality and political turmoil now convulsing both countries has the Finance Curse at its root. The answer is simple for every country afflicted: shrink your local financial centre, to attain greater prosperity – and many other good things besides.
Talk at Helle Panke Berlin on October 1st 2019. A talk in our series “Economics beyond the Swabian hausfrau” organized by Brave New Europe. Supported by St Georges Bookshop and OXI – Wirtschaft anders denken