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The Bank of International Settlements (BIS) recently released a new report analysing the relationship between the growth of the financial sector and productivity growth. The empirical findings are particularly worrying. The BIS economists estimate that in countries experiencing rapid growth in their financial sector, financially-dependent industries experience 2.5% lower productivity growth than in countries with slower growing financial sector. To put that into perspective, the OECD average of productivity growth was 1.6% during 2009-12. Clearly, this is a disturbing finding for any economic policy-maker. What do the BIS findings tell us are the appropriate macroeconomic policy settings for productivity growth? What does this mean governments can actually do? And what does it mean in terms of winners and losers in an economy?