Report
Since the subprime crisis, OECD countries have suffered from a shortfall in corporate investment
The shortfall in corporate investment is not visible when we look at the trend in gross investment, but it is visible when we look at trends in net investment or net capital; a gap between gross and net investment has therefore been created, which results from the increase in consumption of fixed capital (depreciation, wear and tear of capital). What should governments and central banks do if they want to correct this shortfall in corporate investment? Take tax measures in favour of investment (lower taxation of invested profits, lower production taxes, etc.); Maintain low, negative real interest rates, with the limitation that the fall in interest rates does not reduce the required return on equity for shareholders.
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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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