Financial Industry Growth Hurts Economic Expansion, New Research Shows

Mainstream political thinking holds that a nation's economic fortitude relies on an ever-expanding financial sector. But new research disputes the notion. In a new paper titled "Why does financial sector growth crowd out real economic growth?" authors Stephen Cecchetti and Enisse Kharroubi show that when banking blossoms, the "real" economy withers. To see the way the economies of developed nations have transformed in the past few decades, look no further than the career choices of elite college...