Magazine
Latest Issue

Investment: Nowhere to hide

The path to global recovery remains far from clear. Four leading voices set out the regional risks

By Prospect   May 2011

Adam Posen, external member of the Bank of England’s Monetary Policy Committee

UK: Three steps are needed to put the economy on the right track

Most of the economic problems that emerged in Britain during the financial crisis were due to the misallocation of capital over the preceding decade.

Private investment went disproportionately to pure financial transactions (and to rents taken by the financial sector) or to property rather than to the creation of productive assets.  Non-financial corporations have been sitting on cash for years without either returning it to their shareholders or investing commensurately. Public investment caught up after…

Register today to continue reading

You’ve hit your limit of three articles in the last 30 days. To get seven more, simply enter your email address below.

You’ll also receive our free e-book Prospect’s Top Thinkers 2020 and our newsletter with the best new writing on politics, economics, literature and the arts.

Prospect may process your personal information for our legitimate business purposes, to provide you with newsletters, subscription offers and other relevant information.

Click here to learn more about these purposes and how we use your data. You will be able to opt-out of further contact on the next page and in all our communications.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

We want to hear what you think about this article. Submit a letter to letters@prospect-magazine.co.uk

More From Prospect