Now close to 50 percent of GDP, this paper assesses the appropriateness of China’s current investment levels. It … stand out, partly due to a surge in investment over the last decade. Moreover, its investment is significantly higher than …. However, because its investment is predominantly financed by domestic savings, a crisis appears unlikely when assessed against …

Over the past decade, China’s growth model has become more reliant on investment and its footprint in global imports … has widened substantially. Several economies within China’s supply chain are increasingly exposed to its investment …-led growth and face growing risks from a deceleration in investment in China. This note quantifies potential global spillovers …

In the spirit of what is known as business cycle accounting, this paper finds that the investment wedge-the gap between … investment wedge. In the case of China, nonperforming loans, borrowing constraints, and uncertainty over changes in government … investment. In the case of India, post-1992 financial sector reforms, particularly the reduction in the funds preempted by the …

This paper examines how durable goods and financial frictions shape the business cycle of a small open economy subject … than previously documented. Financial frictions improve the ability of the model to match some key business cycle …

and investment high. It finds that the low cost of capital has been quantitatively an important factor. Theory predicts … China is to rebalance growth towards relying more on consumption and less on exports and investment, banking sector reforms …

Investment across the euro area remains below its pre-crisis level. Its performance has been weaker than in most …, corporate leverage, and uncertainty. There is a considerable cross country heterogeneity in terms of both investment dymanics … and its determinants. Based on the findings of this paper, investment is expected to pick up as the recovery strengthens …