The Value of the Intangible
Why have physical investment rates in the developed world been so meagre, despite extraordinary monetary policy, zero interest rates, high profitability and rising asset prices? The answer, according to the ‘Secular Stagnation’ thesis, highlights two substantial problems.The price of capital goods in real terms has declined; and the financial crises has created substantial uncertainty amongst investors, such as they want to lower risk. But could there be another answer? In his latest research series "The Great Transition" Senior Analyst James White takes a different view, arguing that changes to the production side of the economy and the availability of more and better data can go far in explaining much of this weakness. Click (VIEW LINK) to access the series.
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