Anjar Priandoyo

Catatan Setiap Hari

Banking and Structural Transformation

leave a comment »

Economic (Structural) Transformation is (where its spirit to understand why some countries is poor) one of most importance in economics (so remind me not to answer this kind of question. This kind of question is the same with philosophy question in sociology on: what make society change). I found that classic Three-sector theory (Fisher et al) will not be answer developing countries problem.

The sectors that not captured (or not sufficiently covered) in three-sector are:

  • Banking sectors, on how the bank plays its role in economic transformation. ref
  • New Economy, (semiconductor revolution, oil boom, gold rush, automobile revolution, internet age)

There are three theory on the banking systems,

  • Financial intermediation theory of banking (traditional) > advice to encourage developing countries to borrow from abroad is misguided
  • Credit creation theory of banking (money creation)
  • Fractional reserve theory of banking (central/reserve bank)

A lost century in economics: Three theories of banking and the conclusive evidence, Richard A. Werner 2015 ref


Written by Anjar Priandoyo

Juni 5, 2017 pada 10:23 am

Ditulis dalam Society

Tagged with

Tinggalkan Balasan

Isikan data di bawah atau klik salah satu ikon untuk log in:


You are commenting using your account. Logout /  Ubah )

Foto Google+

You are commenting using your Google+ account. Logout /  Ubah )

Gambar Twitter

You are commenting using your Twitter account. Logout /  Ubah )

Foto Facebook

You are commenting using your Facebook account. Logout /  Ubah )


Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d blogger menyukai ini: