On Dec 19, 2007, at 12:52 PM, Rakesh Bhandari wrote:
> You seem to be saying that productivity gains are not so
> impressive and widespread as to encourage a general upsurge in real
> investment.
Compared to what? Here's the latest data - 2004-6 - on the share of GDP devoted to gross fixed capital formation.
China 40.7% India 33.4 S Korea 29.8 United States 19.2 Germany 17.2
Obviously, the "mature" economies are investing a lot less than the "developing" ones, but even in the case of Germany, these are not small numbers. And China and India, or Chindia as they say on Wall Street - those are big numbers, with SK not far behind. So what's the problem, really? If the numbers were bigger, you'd probably be saying that they're overaccumulating and fixing to crash.
Doug