There are, however, a range of things that could go wrong, with the latest wrangling over the US debt ceiling providing just the latest example of developments that damage confidence. But beyond international events, domestic policy choices also matter.
Business confidence – and thus the preparedness to take risk – is likely to be higher if the policy environment is predictable and there is strong commitment to ongoing reform to make markets work well and to boost productivity. Ensuring that regulation is fit for purpose is also important. So too is ensuring that the general business environment promotes innovation.