The European Investment Bank has recently published a working paper on investment decisions in a high-inflation environment.
The paper, co-authored by PPMI (Luka Klimavičiūtė and Marco Schito) and the European Investment Bank‘s Senior Economist Rozália Pál, examines how European firms managed to maintain investment levels during the high-inflation period of 2021-2022, despite the challenges typically associated with rising prices.
Firms with the ability to pass on costs to customers were better positioned to navigate the inflationary pressures. SMEs were most incentivised to invest in energy efficiency, while large firms invested to avoid devaluation of their cash reserves.
The analysis was funded in part by DG GROW and the Research Council of Lithuania.
Explore the working paper to gain a deeper understanding of these investment dynamics.
