Özlem Onaran is Professor of Economics at the University of Greenwich and the director of the Greenwich Political Economy Research Centre.
Productivity puzzle? Financialization, inequality, investment
16 November 2016 By Özlem Onaran, Professor of Economics and Director of Greenwich Political Economy Research Centre, University of Greenwich Productivity in Britain is lower than other developed countries, and the Great Recession has made this dismal performance even worse. This is not at all a puzzle given the investment and growth pattern in Britain. Among developed countries, Britain also has one of the lowest private investment rates as a ratio to GDP. At the core of this development lies the missing link between profits and investment. Rising inequality and financialization have been the main reasons behind this missing link and hence the major brakes on investment, growth, and productivity.