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On the tradeoff between growth and stability: The role of financial markets

Now that you’ve read “On the tradeoff between growth and stability: The role of financial markets,” it’s time to take a stand on Popov and Smets’ argument. Do you agree that “there is a tradeoff between growth and risk and that vibrant financial markets may tend to exacerbate this tradeoff”?

In a short paper, examine their support for this argument and explain why you do or do not think their position is valid. Find and cite external sources to support your thesis.

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