This has resulted in a sharp rise in central government indebtedness which now stands at 66 per cent of GDP in the US, 72 per cent of GDP in the UK and 122 per cent of GDP in Japan. (iii)  Additionally, the continued sluggishness of private sector demand has delayed job creation leaving unemployment rates at uncomfortable highs.
But over recent years, the price of capital equipment has fallen markedly, partly due to the appreciation of the exchange rate, which has reduced the price of imported goods. The lower prices mean that for a given amount of capital spending, the economy obtains more units of capital.