In China and other emerging economies, where infrastructure investment had been considerable even before the financial crisis, governments’ expansionary macroeconomic policies introduced after the financial crisis have stimulated economic activity further. In addition, the inflow of capital has become aggressive against the background of global investors’ increased appetite for risk-taking in the expectation that the low interest rate policy in industrialized countries will continue.
By the end of the last decade, the gap began to close, but this was mainly due to a decrease in spending by US firms. 15 See Y. Park, G. Galassi and N. Kyui “Learning and Earning: The Payoffs of Higher Education,” Bank of Canada The Economy, Plain and Simple (October 7, 2020). -8pressure off global goods prices.