An increase in investment spending caused by higher expected rates of return will, on average, cause an increase in economic growth. That’s the conclusion of a recent paper by economists at the International Monetary Fund (IMF). The IMF researchers found that although the effects vary across countries and time periods, there is “little evidence” to suggest this relationship breaks down over longer periods. This finding runs counter to much received wisdom and has important implications for how policymakers should react to financial crises or slowdowns. -This finding runs counter to much received wisdom and has important implications for how policymakers should react to financial crises or slowdowns. -The IMF researchers found that although the effects vary across countries and time periods, there is “little evidence” to suggest this relationship breaks down over longer periods. An increase in investment spending caused by higher expected rates of return will, on average, cause an increase in economic growth. That’s the conclusion of a recent paper by economists at the International Monetary Fund (IMF). The IMF researchers found that although the effects vary across countries and time periods, there is “little evidence” to suggest this relationship breaks down over longer periods. This finding runs counter to much received wisdom and has important implications for how policymakers should react to financial crises or slowdowns. -This finding runs counter to much received wisdom and has important implications for how policymakers
