Graphs and Stats

Some basic graphs and statistics.

Credit to GDP ratio

One of the key metrics in the “Too Much Finance” literature is the ratio of private credit to GDP, which in Epstein/Montecino study for the UK stood at an average 160 percent of GDP from 1995-2015. This raises an important question: for how long has the UK economy been suffering under an excess of credit?  This graph, from the Steve Keen, provides a clear answer, and (among other things) highlights the political nature of financial dominance.

 

Lending to the “real” economy

Growth of a financial sector may not increase lending to the “real” economy. This graph (source: here) illustrates the scale of problem in the UK.

Here’s a similar, but different way of slicing up the data, for the United States (Source: Juan Montecino, from Federal Reserve Data).

Productivity

Here’s a graph of GDP per hour worked, a measure of productivity, from the OECD.  Finance-dependent Britain, versus “sclerotic” France, and Germany. You can make your own graph, here. If you take the dates back to 1970 (the maximum,) Britain starts below its peers and the gap slowly grows larger.