Sustainable investment rule
- Sustainable investment rule
The sustainable investment rule is a rule by which a government sets it predicted rates of investment on.
This rule has the sole purpose to reduce aggregate demand, in particular consumption (arguably its largest component), in an economy and in the process reduce inflation and unemployment levels by increasing sustainable investment levels. A somewhat controversial topic in the current economical climate taking into account the recent housing crisis in the USA.
Famously adopted by the late Adam Smith, the sustainable investment rule has set a precedent in investment trends all over the world.
References
Emmerson, Carl. "The Government's Fiscal Rules". Institute for Fiscal Studies (2001). ASIN: B0018TWNOS
Further reading
* http://www.hm-treasury.gov.uk/documents/uk_economy/fiscal_policy/ukecon_fisc_index.cfm
* Konstadakopulos, Dimitrios. "Learning for Innovation in the Global Knowledge Economy : A European and Southeast Asian Perspective" 2003. ISBN 9781841500850
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