More recently, consider the development of “micro-finance” in the 1970s: an innovation that has enhanced financial inclusion, helping poor borrowers to smooth their income and cope with illness or other temporary shocks. And, in the last two decades, recall the role of the “venture capital” industry in the promotion of successful innovative corporations such as Apple, Intel and Google.
I would now like to offer a few thoughts on issues related to what has gone wrong in the financial system in the last few decades. I will consider four points: ●  Financial market participants tend not to be aware of the fundamental nonstationarity of economic developments.