response of investment to continued demand weakness, leading in turn to a deterioration in potential output via a hysteresis … government investment as a share of GDP has further exacerbated post-crisis weakness in capital stock growth, both directly and … probably indirectly via adverse spillover effects on business investment. Finally, at a time when the use of conventional macro …

capital stock since the financial crisis can be explained by an accelerator response of investment to continued demand …. In many OECD countries, declining government investment as a share of GDP has further exacerbated post-crisis weakness in … capital stock growth, both directly and probably indirectly via adverse spillover effects on business investment. Finally …