Extract from the Cornerstone Journal of Sustainable Finance & Banking, October 2013, written by Mike Shavel, Research & Business Analyst at Cornerstone Capital Inc. and Erika Karp, Founder and CEO at Cornerstone Capital Inc.
It is no secret that the pace of this recovery has been frustratingly weak, especially in light of the current Fed policy. The combination of the massive increase in money supply and lackluster economic growth has resulted in declining money velocity. At Cornerstone Capital we argue that a key impediment to the efficient flow of capital to SMEs and individuals is the damage that has been done to the faith in capitalism itself. The critical role of finance and banking must be recognized, restored, and facilitated.