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Private long-term investment in uncertain times. Bruegel Policy Contribution 2012/23, December 2012

Zachmann, Georg. (2012) Private long-term investment in uncertain times. Bruegel Policy Contribution 2012/23, December 2012. [Policy Paper]

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    Abstract

    The economic and financial crisis in Europe is affecting the financing of long-term infrastructure investment. There are multiple clearly identifiable channels: reduced demand for long-term investment, a tightening prudential framework for lending, upward adjustment of risk perception, complex transition of the financial system, and increasing macroeconomic, sovereign and regulatory risk. Some of the identified channels are potentially dangerous spillovers from the crisis that entail the risk of a downward spiral (eg increasing regulatory risk), while others are efficient market responses (eg reduced investment demand, correction of pricing of risk). Consequently, public policy instruments should not address the accessibility of long-term finance per se, but should explicitly target the critical channels.

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    Item Type: Policy Paper
    Uncontrolled Keywords: Long-term investment.
    Subjects for non-EU documents: EU policies and themes > Policies & related activities > economic and financial affairs > financial crisis 2008-on/reforms/economic governance
    Subjects for EU documents: UNSPECIFIED
    EU Series and Periodicals: UNSPECIFIED
    EU Annual Reports: UNSPECIFIED
    Series: Series > Bruegel (Brussels) > Policy Contributions
    Depositing User: Phil Wilkin
    Official EU Document: No
    Language: English
    Date Deposited: 20 Dec 2012 13:51
    Number of Pages: 8
    Last Modified: 24 Jul 2015 09:28
    URI: http://aei.pitt.edu/id/eprint/38478

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