…we seeing a boom in business investment? … Well, there’s no puzzle here if rising profits reflect rents, not returns on investment. A monopolist can, after all, be highly profitable…

…tightening its interest rates. The Fed backed off. Businesses and investors have hung their investment decisions on slack monetary policy. Investments in Zombie entities are not going to be challenged….

…cause that he is not mentioning. What appears to be low demand is actually the symptom of lower labor share muting the money multiplier effect of investment. Paul Krugman knows…

…a circular flow model. In that model, investment is increased, as is the intention with expansionary monetary policy. Real GDP grows at a certain rate to a certain equilibrium level…

…less than 30% is significant and may have important consequences. An increase in the share of profits probably leads to an increase in investment early on. Simultaneously, a decrease in…

…less cost. Economics online from the UK… “The effects of an increase in capital investment “The initial impact of investment is on the AD (aggregate demand) curve, which shifts to…

…macroeconomic predicament. Among them are: 1)Why is housing investment still so far depressed below any definition of normal? 2)Why has labor-force participation collapsed so severely? 3) Why the very large…

…don’t understand why he wrote that clause. Free-trade deals must also be accompanied by policies to stimulate growth through infrastructure investments, subsidies for clean energy and, perhaps, other industries, as…

…at a normal level. The low investment is almost entirely due to low housing investment. Also monetary policy mainly works through housing (Krugman calls this the “one of the dirty…

…G works through Investment too. Consumption has not such a very special role in 1960s era Keynesianism. This is for non residential fixed investment (also subtracted from GDP). If one…