Second, fluctuations in business investment can drive the business 1/9  BIS central bankers' speeches  cycle—roughly 50 per cent of the movements in quarterly GDP during the Great Recession and its aftermath were due to shifts in business investment.
And third, investment adds to our stock of capital and increases the level of “potential output” or productive capacity—the level of output our economy can produce sustainably without generating inflationary or disinflationary pressures. My talk consists of three main sections. I’ll start with an overview of the cyclical and structural forces affecting investment.