Corporate Governance – Bank&market Based Economies(1) How and what types of circumstances play as a driver behind the thrive of particular types of industries under economy/economies?(Carlin and Mayer):country characteristics:        – quality of accounting standards;        – concentration of the banking industry;        – ownership concentration.industry characteristics:        – dependence of equity finance;        – dependence of bank finance;        – dependence of other stakeholdersIndustries that are equity-dependent:in advanced countries – growth is strong with good accounting standards and dispersed banking;in less developed OECD countries – growth is driven by concentrated banking.Growth of equity-dependent industries in advanced countries is strong with good accounting standards and dispersed banking.
In less developed OECD countries growth is driven by concentrated banking.Industries that are dependent on external financing and other stakeholders:concentrated ownership is a bigger driver for growth than dispersed ownership.Industries that are dependent on external financing and other stakeholders grow more rapidly in countries with concentrated rather than dispersed ownership. (Renegotiation theory):young and high-tech industries thrive in systems with many small banks;mature industries will prosper in systems with a few large banks.According to The Renegotiation Theory: Young and high-tech industries will thrive in systems with many small banks More mature industries, where innovation is incremental, will prosper in systems with few large banks.
The Renegotiation Theory states that: “Mature, mature, and large banks provide the fastest ways forward that may save the United States from a deep recession at this point in time.”
There have been a variety of scenarios for the United States that have led to a strong rebound against the economic downturn. A typical scenario to consider for a policy review is the same one created by the National Bureau of Economic Research for this report, but with different rules that affect different groups of consumers and industries, specifically whether you hold a bank or the traditional pension system. However, we wanted to examine a model that considers only a few of the key factors—whether you hold a bank in any form or not—to determine how much of what can go to a country’s long run and how much will be paid for in a short time span.This model is based on the “one-size fits all” approach employed by the Federal Reserve, a well-established U.S., U.S., and other federal monetary policies, as well as some basic economic theories (e.g., interest rates and money supply).This model is used by economists and other policymakers when seeking to understand the U.S. economy.
The model estimates how much will be paid in U.S. financial transactions by people between the ages of 21 and 35—over time. The model then considers whether the “one-size-fits-all” approach is still best for the United States or whether it is still preferable to assume a more “fixed-rate” approach where banks can spend their own money in different ways, taking the same amounts of money as if the U.S. government were lending it to each individual person.
When we applied the model’s models to a wide range of economic problems—from government deficits to government debt, from the financial crisis to the wars in Iraq and Afghanistan—we found that even if we could apply these models to a set of scenarios with much less fixed-rate financing, we find that the “one-size fits all” approach to international finance has better economic benefits than the fixed-rate strategy we employed before. What explains this?
The Great Recession
The Great Recession began in early 2010, following a huge run by large-scale financial institutions in the United States, but the recovery was limited by a string of poor economic performance. As unemployment hit the lowest level since the Great Depression in 1929, the country created a great demand for investment.
A growing economy was also accompanied by an expanding and expanding public sector—leading to a renewed focus on infrastructure, housing, and transportation, with economic growth boosting the incomes of all types of consumers and businesses. The Great Recession coincided with the Great Recession of 2008-2009, which triggered a significant shift toward the more open monetary policy direction, favoring policy that encourages domestic investment to grow.
This expanded focus on domestic investment led to higher rates of growth and economic growth—all along the path from a fixed-rate (or less, for that matter) to an enhanced Fed policy based on the same U.