FINANCIAL DEREGULATION, BUSINESS CYCLES AND ECONOMIC-GROWTH

People often hold financial deregulation has a positive influence on economic growth. An improvement of markets and financial intermediaries efficiency is expected, which would promote growth financing. This paper states some theoretical arguments for reconsidering this widely held opinion. Traditional studies analysing the impact of real business cycles on growth conclude to a long-term neutrality. However, some recent papers seem to point out a negative impact of credit cycles on growth. Now, financial deregulation seems to have restart credit cycles. We try to analyse here theoretical links between financial deregulation, credit cycle, and economic growth.