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 … rates is indicative of default risk and has a negative impact on incremental loan amounts associated with higher lending …

reallocated from the private to the public sectors, reducing investment and deepening the recessions even further. To account for … these facts, we propose a simple model of sovereign risk in which debt can be traded in secondary markets. The model has two …. This implies that domestic debt purchases displace productive investment. The model shows that these purchases reduce …

The literature on the investment technology of foreign versus domestic investors has inconclusive results. This paper …

directly or indirectly through investment. In contrast to earlier studies, we conclude that there is some evidence of positive …-eligible countries to reach higher growth, but it remains unclear whether this is through higher investment or another channel. Also, the …