Improvements in the financing of physical and human capital, both in terms of increasing magnitudes, and in terms of allocative efficiency, should raise efficiency and productivity across the economy. This approach justifies the choice of my topic today. Financial intermediation is essential to the promotion of both extensive and intensive growth.
Also in the United States and the United Kingdom, the spread between overnight unsecured rates and collateral-driven repo transactions (non-GC) and short-term bill rates has widened since the start of the hiking cycle.