By Howard Davies, the Deputy Governor of Bank of England.
Howard Davies, the Deputy Governor discusses the United Kingdom’s investment record. He argues that the single most important factor behind the low level of investment relative to other industrialised nations has been macroeconomic instability. He points out that investment has been slow to recover in this upturn, but that the conditions are now in place for a possible pick-up this year. He argues that although businesses do not face a generalised shortage of finance, gaps remain; particularly for technology-based growth companies and for Private Finance Initiative projects.