6 In addition, recent ECB research has pointed to the fact that large differences persist among European countries in terms of new business creation and patenting activity. It has concluded that much of this difference can be attributed to the existence of more developed credit markets and risk capital markets.
7 All this evidence has led most financial economists to think of the relationship between finance and growth as one in which “more is better”. However, the recent crisis has revealed that a financial sector which goes beyond a certain threshold (or breaking point) can harm the economy and society as a whole.