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Taylor and Jorda featured in Time Magazine

Are banks investing in the economy?

Research by UC Davis Economics Professors Alan Taylor and Oscar Jorda was recently featured in the May 23 cover story of Time Magazine.   The article describes how Jorda and Taylor, along with Moritz Schularick, have documented how the financial industry has turned away from its traditional role of providing capital to other industries. "By their estimates and others, around 15% of capital coming from financial institutions today is used to fund business investments, whereas it would have been the majority of what banks did earlier in the 20th century."

```http://time.com/magazine/us/4327411/may-23rd-2016-vol-187-no-19-u-s/