As can be seen, there is no evidence that higher corporate profits are associated with an increase in investment
They show the chart on the left, carefully choosing the period back to 1950 so as to foul the statistics. An old trick used to lie.
We had a regime change in 1972 bozos, we left the gold standard and went to market money. It was rather sudden and nothing is normal until about the 80s when we sorted it out.
So, just take the data from 1980 on, the full, current monetary cycle. We seethat profit and investment are quite correlated. The correlation coefficient looks to be something like 50%, very strong.
Thus we have direct proof that the CEPR is a habitually lying organization, ignore them.
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