Puzzles in non-financial corporations debt, savings and investment

The net financing position of non-financial corporations is turning positive in many countries around the world. This is a departure from standard net savings patterns, in which households save and firms invest, and which may underpin possible under-investment in a context of "secular stagnation". An appropriate understanding the implications of these trends is particularly important for Europe, as this could be among the factors underpinning the large current account surplus. Moreover, under-investment coupled with high indebtedness by NFCs in some countries could lead to a long-lasting period of low growth and impaired balance sheets, which should make it more difficult reducing high stocks of non-performing loans (NPLs).

The workshop will be a one-day event featuring two sessions of analytical presentations, to analyse if non-financial corporations (NFCs) are saving too much, and determine macroeconomic and policy implications of NFCs savings and investment behaviour.