What is needed, the study concludes, is a smaller financial sector better focused on the real future needs of the economy, such as investment in low-carbon technologies and better pensions for an aging population.
Don’t hold your breath. The power of the financial lobby remains immense, despite its role in pushing the global economy to within a whisker of a mark 2 Great Depression. Failure to tackle the imbalances and to reform finance would increase the chances of another crisis. But it may take that for politicians to turn words into action.
RSS