2min chapter

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Planetary Crisis? Call an Economist! - Ep48: Nick Stern

Cleaning Up: Leadership in an Age of Climate Change

CHAPTER

Is 2% of Investment a Good Thing?

We live in a world which has got, if you like your Keynesian stories, planned investment far too low relative to planned saving. Now the answer to that is not to cut your saving, it's to increase your investment. And of course right now you've got the excess capacity in the economy so you don't worry too much about inflationary pressures certainly in the short medium term. I wouldn't be worried over these next few years about the inflation part of the story.

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