Business investment in advanced economies contracted sharply during the global crisis and has recovered little since. This column argues that the main factor holding back investment is overall economomic weakness. In some countries other contributing factors include financial constraints and policy uncertainty. Fixing the investment dearth will require fixing the general weakness in economic activity.
Aqib Aslam, Samya Beidas-Strom, Daniel Leigh, Seok Gil Park, Hui Tong, 18 April 2015
Alberto Giovannini, Colin Mayer, Stefano Micossi, Carmine Di Noia, Marco Onado, Marco Pagano, Andrea Polo, 30 January 2015
Persistently low investment is dragging down European economies. This column introduces a new study that examines the symptoms and explores the possible causes of this investment dearth. The study, a ‘Green Paper’ which seeks to delineate the issues and provoke reflection, is the first output of the Assonime-CEPR project ‘Restarting European Long-Term Investment Finance’.
Marco Buti, 22 December 2014
Weak investment is a key macroeconomic problem in the Eurozone, and the new European Commission has proposed an ‘Investment Plan’ to complement existing policy initiatives. In this column, the Commission’s Chief Economist explains the key rationale behind the Investment Plan.