The financial system channels resources from savers to investors.
It helps firms to fund new investments and households to smooth
consumption over time. It allows entrepreneurs to offload risk on
outside investors, and households and firms to access liquidity that
helps them carry out their consumption and investment plans. A
well-functioning financial system is essential to the workings of the
economy.
Nordic Economic Policy Review 2020: Financial Regulation and Macroeconomic Stability
Financial Regulation and Macroeconomic Stability in the Nordics
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