Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/205557
Authors: 
Claus, Iris
Jacobsen, Veronica
Jera, Brock
Year of Publication: 
2004
Series/Report no.: 
New Zealand Treasury Working Paper No. 04/17
Publisher: 
New Zealand Government, The Treasury, Wellington
Abstract: 
The purpose of this paper is to develop an analytical framework for discussing the link between financial systems and economic growth. Financial systems help overcome an information asymmetry between borrowers and lenders. If they do not function well, economic growth will be negatively affected. Three policy implications follow. First, the analysis underscores the importance of maintaining solid legal foundations because the financial system relies on these. Second, it demonstrates the necessity for reforming tax policy as it applies to investment, as this is demonstrated to significantly affect the operation of the financial system. Finally, given the importance of financial development for economic growth, a more in-depth review of New Zealand's financial system in the context of financial regulation and supervision would be valuable.
Subjects: 
Economic growth
financial development
financial systems
financial regulation
legal system
institutions
tax
JEL: 
G10
G20
G38
H25
K20
K34
O16
Creative Commons License: 
https://creativecommons.org/licenses/by/4.0/
Document Type: 
Working Paper

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