How does your stockmarket grow?(Economic Focus)(Column)

Economist (US), The, July, 1996

The unpredictable nature of stockmarkets have not deterred many developing countries from creating their own bourse. Economic studies on the impacts of stockmarkets on economies have shown that liquid stockmarkets act as catalysts for growth because they encourage banks to lend.

Emerging stockmarkets are often dismissed as little more than casinos. But new evidence shows that they can be important catalysts of growth

LEGIONS of highly paid stockbrokers in London and New York pore over them. International fund managers bet billions of dollars on them. And investment bankers have made a fortune by organising the flotation of companies on them. But emerging stockmarkets still stir up a mixture of pride and fear among policymakers in poor countries. On the one hand,...

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