Why is there Finance
From Open Risk Manual
Why is there Finance?
There are several arguments why modern society has developed complex financial systems:
- helps (in principle) with the better management of various forms of Risk
- Financial Markets help to providing price signals
- help curbing agency problems
- reduce informational asymmetries
- support economic growth
- facilitate entrepreneurship
Issues and Challenges
- Inequality
- Sustainability
- Poor regulation
- Recurring financial crises
- Financial Literacy
