Theoretical models of the possibility of excessive financial growth range from banks’ failure to internalize systemic risks from growth of bank leverage and ballooning balance sheets to rent-extraction in opaque OTC markets.10 Research has also shown how financial innovation waves can raise the risk of endogenous crisis.11 Moreover, as financial innovation caters to investors’ desire for safe assets, systemic risk may follow if these new “safe” assets turn out to be highly risky, as happened in the last crisis.12 Cross-country evidence indicates that financial innovation does contribute to economic growth, especially in industries dependent on external finance.
BIS Review 22/2005  3  If we find more innovative ways to keep students engaged in their education, they will leave school with the enthusiasm they need to continue learning throughout their career. For some students, especially boys, school can feel like incarceration.