Tag Archives: investment

Is Investment Depressed by an “Anti-Business” Climate?

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The National Journal asks for reactions to a recent blog post by Greg Mankiw regarding the reasons why US investment has fallen sharply. 

I agree with Greg that the dominant empirical fact about investment is its procyclical volatility (the main reason investment has been depressed for the last two years is that the economy has been depressed), and also that the recent credit crunch made it worse.   But I don’t agree with a third item on his list: “the policy environment seems adverse to business.”   As in many areas, it is when we get to the politics that I disagree.  read more

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TIPS tips

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Everyone asks for tips: Where can I put my money?   Stocks or bonds have done very badly over the last  year, needless to say, and one cannot be confident that they have hit bottom.  Should one just leave everything in banks and money market funds?   Surely there must be something else worth buying?

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