Adair Lord Turner, Senior Fellow at the Institute for New Economic Thinking

The video discusses the interplay between the financial system and innovation, questioning whether innovation thrives under a free-market system or requires state intervention. It highlights the challenges within financial systems, such as instability and high costs, and examines the role of finance in society, noting its tendency to misalign with societal needs. The video critiques economic theory for its inadequate representation of real-world finance, particularly in how banks operate, suggesting a disconnect between theory and practice.

What is a key question regarding the relationship between finance and innovation?

• Whether innovation is more important than finance

• If innovation is solely driven by a free-market system or needs state support

• How innovation can eliminate the need for finance

• Whether innovation can occur without any financial system

What is one of the negative aspects of the financial system discussed?

• It always leads to economic growth

• It is too cheap to maintain

• It eliminates the need for regulation

• It can cause instability

What is a potential positive role of the financial system?

• To eliminate state intervention

• To reduce the need for economic theory

• To support and enhance innovation

• To increase the cost of innovation

What does the speaker suggest about economic theory's treatment of finance?

• It accurately reflects real-world banking practices

• It is too focused on innovation

• It fails to address what finance actually does

• It is overly concerned with state intervention

How does the speaker describe the depiction of banks in economic textbooks?

• As perfectly aligned with real-world practices

• As being too focused on innovation

• As being far removed from real-world practices

• As overly concerned with state regulation