(Why) Is investment weak?


"In spite of very easy financing conditions globally,
investment has been rather weak
in the aftermath of the Great Recession.
What explains this apparent disconnect?
The evidence suggests that,
historically, uncertainty about the future
state of the economy
and expected profits play
a key role in driving investment,
and financing conditions less so.
As a result, investment after
the Great Recession
appears to have been broadly in line with
what could have been expected
based on past relationships.
A stronger recovery
of investment would seem
to depend on a reduction
in economic uncertainty
and expectations of
stronger future growth",
leemos here




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