Encouraging firms’ attempts and unlocking their growth potential will promote business fixed investment and research and development, expand employment, raise wages, and, through an increase in interest and dividend as well as capital gain, strengthen households’ income and asset formation.
The financial stability component of sound finances August 2007 saw the start of the financial turmoil with an increasing loss of confidence in the financial markets, a drying-up of liquidity and an increase in both risk premia and counterparty risks. Ever larger volumes of so called AAA-rated privately issued assets became “toxic”.