Finance and the Rich Country Curse

January 02, 2014

Simon Johnson has a good post on how a bloated financial sector is often a curse to rich countries like the United States. The piece can use a small correction.

It gives South Korea as an example of a middle income country in which manufacturing still is a dominant force. South Korea really should be viewed as an advanced country. It’s per capita income is higher than Italy’s and only about 10 percent lower than the United Kingdom’s.

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