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Type: Journal Articles Authors: Murtaza Syed
Published in: Economic Review
Volume, issue, pages: Vol. 21, No. 3
How does uncertainty affect business investment? Murtaza Syed, of the Institute for Fiscal Studies and Nuffield College, Oxford, reviews the economic theory underlying the presence (or absence) of this relationship. Recognising that investment is a key determinant of long run economic growth, the current Labour government regards stimulating business investment as one of its central objectives. It has identified the provision of ‘macroeconomic stability’ as an important means of encouraging higher levels of private sector investment. In this article, we will examine whether economic theory supports the view that uncertainty discourages investment. Search |
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