The investment puzzle

Chris Dillow

Chris Dillow
The investment puzzle

One of the strongest symptoms of secularstagnation - the slowdown in longer-term western economic growth that has caused real interest rates to fall - has been companies’ reluctance to invest. In the US and UK, the share of business investment in GDP is lower now than it was for much of the 1980s and 90s. This poses the question: why aren’t firms investing?

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