The existence of linkages between financial markets and economic growth has been known for some time and is undisputed. However, for the first time this relationship is to be examined empirically and comprehensively.
These are the questions that 25 economists from 8 European research institutions will examine for the European Commission. The project FINESS (“Financial Systems, Efficiency and Stimulation of Sustainable Growth”) is a component of the 7th EU Framework Programme.
In addition to the Ifo Institute, the following institutes are participants:
The part of the project for the Ifo Institute deals with the importance of the very differently functioning real-estate and mortgage markets for the implementation of a uniform monetary policy in the euro area.
Further details about FINESS are on the project website.
