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New finance research has been reported by scientists at Harvard University
June 8th, 2010
"Financial regulation was as hotly debated a political issue in the 19th century as it is today. We study the political economy of state usury laws in 19th century America," investigators in the United States report.
"Exploiting the wide variation in regulation, enforcement, and economic conditions across states and time, we find that usury laws when binding reduce credit and economic activity, especially for smaller firms. We examine the motives of regulation and find that usury laws coincide with other economic and political policies favoring wealthy political incumbents, particularly when they have more voting power," wrote E. Benmelech and colleagues, Harvard...
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Source: VerticalNews Ivy League (2010-06-08)