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 …

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 …

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 …