It is often said that finance is the core of economy, some has even said that international finance is the core of contemporary economy, but why is that so?

It seems like no convincing explanation has been offered.

During an in-house discussion, Zhong Wei, the guest economist at ANBOUND Consulting said that since the subprime mortgage crisis, we might have reasons to be skeptical of the notion that the finance is the core of the economy. Perhaps, it is time for us to realize that finance has many limitations.

To a large extent, the ability of the financial system to distribute wealth is far stronger than its ability to create wealth. This coupled with the emergence of super central banks is a phenomenon that we should watch closely.