... role of a sound and well-functioning financial sector for economic activities. An efficient financial sector allocates the resources saved by a nation's citizens, as well as those entering the economy from abroad, to their most productive uses. It channels resources to those entrepreneurial or investment projects with the highest expected rates of return rather than to the politically connected. A thorough and proper ... ...

• Word Count: 4162
• Approx Pages: 17
• Has Bibliography
• Grade Level: Graduate

... sums up the 3 main criticisms of economic performance during the period. The first is that output grew too slowly because of sluggish demand, the second that too much was invested abroad because of imperfect capital markets and the third was that productivity stagnated because of inept entrepreneurship. On the subject of "sluggish demand" McCloskey said that if faltering demand had been ... ...

• Word Count: 1116
• Approx Pages: 4
• Grade Level: Graduate

... market and private sector are the engines for unrestricted growth, the benefits of which will trickle down from the owners of capital to the entire population. Plant closings and relocations abroad may have been anathema to advocates of a national "industrial policy", but were perfectly compatible with a theory that regarded protected work forces as a constraint on market competition. Removal of state subsidies ... ...

• Word Count: 1434
• Approx Pages: 6
• Grade Level: Graduate