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Financial Intermediation: Policy Issues. Contrast the ways in which financial savings were mobilised, and were allocated to investment projects, in any two countries of your choice.
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Financial Intermediation: Policy Issues Contrast the ways in which financial savings were mobilised, and were allocated to investment projects, in any two countries of your choice. Mobilising financial savings is obviously of great importance for the economic development of an economy as it allows the expansion of investment throughout the economy. Unless savings can be mobilised it is very difficult for entrepreneurs and firms to obtain the funds required so that investment projects can be financed. Without the efficient mobilisation of savings entrepreneurs have to rely on past profits as the source of finance and hence many good investment projects, especially those in potentially prosperous infant industries are unable to be undertaken. This essay aims to analyse how these savings can be mobilised and the investment projects to which these were channelled hence helping development in light of the differing experience of Germany and India. The role of a credit market in a...
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