Financial system crucial for economic growth and development, study finds.
The article discusses how the financial system impacts economic growth and development. It explains the traditional view of this relationship, the effects of financial crises, and the role of the state in the financial system. The financial system helps transfer money from savers to investors, enabling economic transactions. It also highlights how financial crises can lead to decreased production. The article emphasizes the importance of public authorities in regulating the financial system to support the economy.