Intangible Investment and Economic Implications

This document is a speech delivered by Dr. Fritzi Köhler-Geib, a member of the Executive Board of the Deutsche Bundesbank, at the Global Launch of the World Intangible Investment Highlights 2026 report. The speech addresses the growing importance of intangible investments in the economy, noting that since 2008, intangible investments have increased at a rate more than three times that of physical investments. It discusses the implications of this trend on monetary policy transmission, highlighting that the effectiveness of monetary policy is weakened due to the challenges intangible assets pose as collateral for loans. The speech also examines the impact of rising intangible assets on financial stability, indicating a shift in banks' lending practices towards real estate due to the difficulties in securing loans against intangible assets. Finally, it emphasizes the need for improved data collection and measurement of intangible investments to inform better governance and policy decisions.