erp00-6.pdf (109.31 kB)
Flow of funds: implications for research and financial sector development and the real economy
preprint
posted on 2005-08-22, 11:40 authored by Christopher Green, Victor MurindeThis paper provides a selective survey of the leading theoretical and empirical issues
surrounding the flow of funds: its meaning and origin, problems of construction, and more
particularly the key issues involved in financial modelling. It is argued that there is an
intimate connection between the flow of funds, interest rate and asset price determination,
and hence incomes and expenditures in an economy. The paper also explores the reasons
for lack of success at empirical flow of funds modelling and proposes “promising research
ideas” (PRIs) for future research on the relationship between financial sector development
and the real economy, especially in order to identify effective financial sector policies for
promoting poverty-reducing economic growth in low-income developing countries.
History
School
- Business and Economics
Department
- Economics
Pages
87256 bytesPublication date
2000Notes
Economics Research Paper, no.00-06Language
- en