The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd


  • Charles Goodhart
Reference work entry


‘Intermediation’ generally refers to the interposition of a financial institution in the process of transferring funds between ultimate savers and ultimate borrowers. The forms of services that such financial intermediaries provide, the characteristics of their liabilities and assets, and the rationale for their existence is described elsewhere. For this purpose, we only need to assume that a certain pattern of financial intermediation is given, say by actual historical development, or is theoretically optimal.

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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Charles Goodhart
    • 1
  1. 1.