Financing the Investment Boom
The current expansion has been characterized by an extraordinary advance in business investment, financed through both strong cashflow and substantial consumption borrowing. Economic profits (book profits after inventory valuation and capital consumption adjustments) of nonfinancial domestic firms have increased to more than 13% of their output, the highest share in over 20 years.
Suggested citation: “Financing the Investment Boom,” Federal Reserve Bank of Cleveland, Economic Trends, no. 97-09, pp. 05, 09.01.1997.