F. Productivity Shocks, Innovations, Stock Market Dynamics and Growth

Abstract

The banking business in the late twentieth century has undergone profound changes. A first aspect is that the speed of adjustment in financial markets has increased in the course of digitization, computer expansion and the internet revolution, at the same time bringing down heavily prices of transactions in financial markets and thus contributing to the internationalization of financial markets and banking. A second key aspect is economic globalization with the result that for many financial products there exists a global market in which only a fewlarge banks compete.