Buti, M., Mohl, Ph., (2014), “Lacklustre investment in the Eurozone: Is there a puzzle?”, www.voxeu.org, 4 June.
Investment in the Eurozone is forecast to remain below trend until 2015, with a particularly large shortfall in the periphery. Low investment reduces aggregate demand, thus lowering short-term growth, and it also hampers medium-term growth through its effect on the capital stock. This article highlights three causes of low Eurozone investment – reduced public investment, financial fragmentation, and heightened uncertainty – and proposes a series of remedies.
Relevant posts:
- Infelise, F. (2014) “Supporting Access to Finance by SMEs: Mapping the initiatives in five EU countries“,Financial Markets, ECMI Research Reports, CEPS, 23 Απριλίου.
- Tiffin, Α. (2014) “European Productivity, Innovation and Competitiveness: The Case of Italy“, IMF Working Paper, Strategy,Policy and Review Department, Μάιος.
- Bibow, J. (2014) “On The Alleged Pains of the Strong Euro“, Social Europe Journal, 03 Απριλίου.
- Bauchowitz, St. (2014) “Entrepreneurship in Southern Europe: Symptom or Solution to the Euro Crisis?“, LSE Eurocrisis in the Press, 14 Φεβρουαρίου.