Why do researchers disagree about the role of stock markets, banks and finance?
Why do researchers disagree about the role of stock markets, banks and finance?
Is it because they use different research models? I do not understand. For instance, in the one hand we have Robert Lucas who says that the role of finance is overstressed and, on the other hand, we have Ross Levine who says finance, stock market and banks are important for economic growth.
Thanks in advance,
Toto.
Finance best answer:
Answer by epicfail2011
You have it. Economics in general is basically a theoretical (i.e. modeling) science; it's not a science where things can be proved in a lab under controlled conditions. The WORLD is the lab and the conditions are far from controlled, as we all know.
So, academic types come up with their theories and models; sometimes they are right and sometimes they are wrong. And disagreements between theories are prevalent.
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JP Morgan --- Titan of Finance
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