We study the effects of monetary-policy-induced changes in Tobin's q on corporate investment and capital structure. We … evidence, and quantify the relevance for monetary transmission to aggregate investment …

discount rates and thereby raise real investment. We analyze the macroeconomic implications of sticky discount rates using a … New Keynesian model. The model naturally generates investment-consumption comovement in response to household demand … shocks and higher investment in response to government spending. Sticky discount rates imply that inflation has real effects …

Standard theory implies that the discount rates used by firms in investment decisions (i.e., their required returns to … capital) determine investment and transmit financial shocks to the real economy. However, there exists little evidence on how … firms' discount rates change over time and affect investment. We construct a new global database based on manual entry from …

financial systems around the world. The database provides information on financial systems in 205 economies over the period from …

accumulation process lead to fluctuations in the real returns from intermediated investment. For this economy, we find that the … output, investment is negatively correlated with output, variations in the capital stock are quite large and interest rates …