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> International banks have spearheaded an absolute explosion in global economic growth. I assumed it's the other way around. Economic growth comes from technic
by dgb23 4y ago
> International banks have spearheaded an absolute explosion in global economic growth.
I assumed it's the other way around. Economic growth comes from technical and cultural advancements. Banks are a symptom of that growth.
- ace32229 4y agoI disagree it is that clear-cut (including GP's inversion). Access to credit is essential to businesses and governments (and individuals).
- dgb23 4y agoWasn't credit invented before banks were?
- FredPret 4y agoBanks are a massively significant cultural innovation. I can pay someone in a different country by pressing a button and it's a reliable, robust system. In those days, it was a huge deal to be able to pay a merchant in France by giving gold, or even a paper representing ownership of gold, to a bank in England. Before, you had to send the money on a ship and hope for the best. International banks led to a massive explosion in trade and global prosperity.
- dgb23 4y agoOr is it advancements in communication technology that enables what you describe? What makes a bank an international bank?
- FredPret 4y agoNot really. An international bank is one legal entity in two places. If you deposit 1 kg of gold in place A, your business partner can withdraw it in place B, minus fees of course. The bank still has to transfer the gold to make up the difference at a later date. The benefit is the merchants don’t have to do this themselves anymore. Think of it as shipping-gold-as-a-service.
- onetokeoverthe 4y ago
- acchow 4y ago> Economic growth comes from technical and cultural advancements. At the frontier (fully developed economies operating at the current max GDP per capita). For developing economies, it is just expanding our existing technological advancements into their systems