Wall Street

Planet Money
10:20 am
Mon July 16, 2012

How A Bloated Wall Street Can Hurt Growth

Helping or hurting the economy?
Bebeto Matthews AP

Originally published on Mon July 16, 2012 8:59 am

We all know an out-of-control financial sector can cause acute and long-lasting problems, thanks to the recent financial crisis. But is there also a more chronic drag on the economy when the finance crowd gets too thick?

One recent paper (PDF) suggests so, and tries to quantify just how much a bloated financial sector can hurt economic growth.

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