Socially Useless? The crucial contribution of finance to economic life
Philipp Booth, Diego Zuluaga
This paper examines the social functions of finance and consider whether the financial sector is intrinsically socially useful. The financial services sector has been under attack in recent years, especially since the financial crisis. However, the bias against finance dates back to centuries ago. These attacks have come in various forms, mainly criticizing its size. The reality looks different: the financial sector add value, helps in risk management, reduces transaction costs and enables the coordination of information exchange in the economy.