The Growth of Financial Intermediaries: Their Effect on Commercial Banks and Monetary Policy
Abstract
The purpose of this paper is to acquaint its reader with the growth
and present importance of financial intermediaries. The first section is
a general overview of the growing importance of financial intermediaries
and their role in the United States financial market.,' The second section
is a systematic summary of the controversy among economists concerning this
growth and its effect on the ability of the Federal Reserve authorities
to effectively implement monetary policy. The third section summarizes
the paper and explicitly states my own views on the impact of the financial
1ntermediary on the financial structure and monetary policy effectiveness. With honors.