Report
Has finance financed the right investments and spending?
One criticism levelled at finance is that it does not channel savings in to the right investment s or spending. Finance can finance: Corporate investment, which is normally positive; Housing investment, which is positive if lending drive s up the volume of construction , but not if it drive s up house prices; Household consumption, which is not positive from the viewpoint of supporting long-term growth; Public investment, which can be positive; Current public spending, which is not positive. When we look at OECD countries since 1980, we see that finance has channelled savings into: Corporate investment only from 19 8 0 to 1989; Never housing investment in volume terms or public investment; Rising real estate prices until 2008; Current public spending. This shows that finance has not managed to channel savings into the right investments since 1990.
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Natixis
Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.
Patrick Artus
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