It may be that finance is good for economic  7  development over a certain period, but only if practised in moderation. The idea of optimal financialisation seems to have been accepted implicitly by the financial sector reform measures being contemplated in many advanced economies.
At the same time, several developing and emerging economies are considering measures to develop the financial sector, in particular financial markets. In their quest for optimal financialisation, the countries that are attempting further deregulation and development of financial markets would benefit from an understanding of how excess financialisation manifests itself.