Dennis Kelleher on The Most Pressing Problem in Global Economics @ #INET2017

The global financial system remains fragile, with explicit government guarantees since 2008. This has led to an economy dominated by too big to fail banks, resulting in an oversupply of credit that doesn't reach the productive economy. Consequently, economic growth, productivity, and wages are low. The financial sector thrives on speculation, benefiting a few bankers, while the real economy suffers. A fundamental shift in economic thinking is needed to prioritize the productive economy over finance, ensuring broader prosperity.

What transformation occurred in 2008 regarding government guarantees in the financial system?

• They became implicit.

• They became explicit.

• They were reduced.

• They were abolished.

What is a consequence of the oversupply of credit not reaching the productive economy?

• Increased economic growth

• Higher productivity

• Lower wages

• Greater financial stability

Who benefits the most from the current cycle of financial speculation and financialization?

• Small businesses

• The general public

• Government institutions

• A few thousand bankers

What fundamental change is suggested for the economic profession?

• Prioritize the financial system over the productive economy

• Reverse the hierarchy to support the real economy

• Maintain the current economic structure

• Focus on increasing financial speculation

What is the ultimate goal of reversing the economic hierarchy?

• To increase financial sector profits

• To eliminate financial institutions

• To support the real economy and benefit everyone

• To reduce government intervention