Rue de la Banque no. 44: Explaining the recent slump in investment: the role of expected demand and uncertainty

The weakness in business investment in several advanced economies since the global financial crisis has prompted debate over the main drivers behind this trend and the possible policy responses, if any. This Rue de la Banque summarises an empirical investigation of the main determinants of business investment since 1995 for a panel of twenty-two advanced economies...