This paper examines the impact of interest rates and inflation on bank loans and investment within a framework that … treating the lending and deposit rates of interest as distinct parameters in investment equations. The spread between the two …

Investment across the euro area remains below its pre-crisis level. Its performance has been weaker than in most …, corporate leverage, and uncertainty. There is a considerable cross country heterogeneity in terms of both investment dymanics … and its determinants. Based on the findings of this paper, investment is expected to pick up as the recovery strengthens …