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 are the good things that the financial system should do to promote innovation?

Why is it important to understand what banks actually do in the real world?