Banking Solvency and Consumption are Required for Economic Growth - A Comment on World Financial Crisis

8 Pages Posted: 16 May 2011

Date Written: May 15, 2011

Abstract

In the present short paper author attempts to point out econometrically the importance of banking sector viability and household consumption as a requirement for economic growth. In the recent financial crisis many economies are facing the danger of financial collapse. The remedy is difficult, cold minded policy-makers are needed and the most important of all is that banking sector as the cornerstone of capitalism should at any cost be protected, for economic growth relies on a healthy financial system and a continuous consumption. Panel data regression analysis will be used based on the Eviews software package.

Keywords: Econometric models with panel data (single equation), economic growth, financial system, consumption, capitalism

JEL Classification: C23, F43, G, E21, P1

Suggested Citation

Georgiou, Miltiades N., Banking Solvency and Consumption are Required for Economic Growth - A Comment on World Financial Crisis (May 15, 2011). Available at SSRN: https://ssrn.com/abstract=1842863 or http://dx.doi.org/10.2139/ssrn.1842863