Only by doing so will the very real hope of improvements in all aspects of our nation’s life be established. Regarding to economic issues we face, I am sure that we can all agree that coordination and cooperation with various other institutions which have the authority, expertise, and appropriate policy instruments will be instrumental in resolving those issues.
Second, the financial system can grow too large relative to the real economy because it can extract excessively high informational rents and pay excessively high wages. For example, while in the wake of World War II the financial sector accounted for less than 2.5% of total labour income, in 2006, this share was 8.3%.