Intangible Investment and the Global Economy: Perspectives from a Central Banker

In her recent speech at the BIS, Dr. Fritzi Köhler-Geib, a member of the Executive Board of the Deutsche Bundesbank, highlighted the growing importance of intangible investments in the global economy and their implications for central banks. The discussion centered on recognizing and understanding these investments, which include assets such as intellectual property, social networks, data, and knowledge, in an era where innovation and human capital are increasingly crucial for corporate competitiveness. Köhler-Geib argued that while tangible investments remain fundamental, current economic dynamics require a broader approach to analyzing productivity and economic growth. According to her, monitoring these intangible assets can provide valuable insights into business efficiency and global economic cycles, allowing monetary authorities to adjust their policies more accurately.