Thursday, January 18, 2007

MvKinsey Survey: Mapping the global capital markets

On reading the fact that the the value of the world’s financial assets now exceeds global GDP by a factor of three which shows an unprecedented degree of financial depth, i was a bit confused of how's that possible?

Well, i got the naswer in the same article which says that Financial depth can exceed GDP since the former reflects predicted future returns and growth, while the latter current economic activity.

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