The interest rate is generally considered as an important driver of macroeconomic investment. As an innovation, this … paper derives the exact shape of the "hysteretic" impact of changes in the interest rate on macroeconomic investment under … capital stock and, explicitly, of stochastic changes on the interest rate-investment hysteresis. Starting with hysteresis …

The interest rate represents an important monetary policy tool to steer investment in order to reach price stability …. Therefore, implications of the exact form and magnitude of the interest rate-investment nexus for the European Central Bank …'s effectiveness in a low interest rate environment gain center stage. We first present a theoretical framework of the hysteretic …

This paper examines the linkages between the trade of goods and financial assets. Do both flows behave as complements … macroeconomics, the empirical evidence has remained relatively scarce so far, in particular for the Euro area where trade and … from 2002-2012, to test the so-called trade-finance nexus. Since theoretical models stress that both flows might be …

firms to cut investment, employment, and borrowing. We conclude that financial market fluctuations affect even private firms …

banking development reduces the cash flow sensitivity of fixed investment spending, particularly for small firms, and that it … increases the probability they will engage in R&D. -- banks ; financial development ; innovation ; R&D ; investment …

. Most firms revise downward their expectations for sales, orders, employment, and investment, while prices are expected to …