Interesting view from Michael Pettis:
Excess liquidity and risk appetite makes it easy to lock in cheap, long-term funding for investment projects. Countries that have weak infrastructure, or whose infrastructure is in serious need of improvement, have today an historical opportunity to build or replenish the value of their infrastructure with very cheap capital. This is truly the time for governments to identify their optimal infrastructure needs and to lock in the financing.
Read more at Can monetary policy turn Argentina into Japan? | Michael Pettis' CHINA FINANCIAL MARKETS.
Thanks for all this on infrastructure . Either an amazing coincidence with Obama or very rapid response. The UK government is so stupid in this respect that they failed to use idle skilled resource during the recession to build infrastructure and now they think abut it many have left to go to other jobs or are now fully employed.
Nouriel Roubini’s point about productive infrastructure is important. It would be interesting to attempt to put investment into the two groups . Sadly National Accounts conventions clump all investment together in one group.