This chapter summarizes the book by making two points. Surveying the literature on growth, it shows that aggregate data do not always capture the quality of financial development, contrasting America and England. Despite North and Weingast 1989) claims that the Glorious Revolution improved English institutions by leaps and bounds, banking was hamstrung by a variety of regulations, including the usury laws. Because of these regulations, English wartime borrowing hit investment in the Industrial Revolution particularly hard, by making impossible for the private sector to compete for funds. The combination of massive borrowing and financial repression in the form of highly restrictive regulation is responsible for the seeming paradox of slow economic growth at a time of rapid technological change..
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