LONDON (Reuters) – Difficulty measuring firms’ spending on intangible assets such as brands and in-house software may be behind some of the weakness in official measures of business investment, a senior Bank of England official said on Thursday.
Jonathan Haskel, an external member of the BoE’s Monetary Policy Committee, said business investment had been weak between 2010 and 2016, before Brexit uncertainty offered a more immediate reason for an investment slowdown.
Economy - Part - Story - Lecture - University
“For the aggregate economy, intangibles appear to be part of the story,” he said in a lecture at the University of York.
This mismeasurement – as well as the different ways intangible assets are financed compared with physical assets – would have implications for monetary and regulatory policy once they were fully understood, he said.
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