Intangible investment is growing as a share of economic activity. We present a simple framework incorporating its … distinguishing characteristic of generally greater scalability and lower marginal costs than tangible investment. We show evidence … that this may have contributed to more elastic aggregate supply in recent years, which is consistent with lower inflation …

investment, and fiscal balances, from an empirical perspective. Based on empirical findings-particularly regarding inflation … variables move over time and analyzes how they influence macroeconomic variables such as economic growth, inflation, savings and …

observed effect is a negative inflation-investment correlation that replicates previous empirical findings, due to purely short …The paper presents a model of irreversible investment under uncertainty, where investment takes place whenever a … inflation induces an upward capital stock adjustment. In economies that move in and out of temporary stabilizations, the …

Since the mid-1970s the annual inflation rate in Africa has averaged more than 15 percent, with many countries … experiencing rates of 20 percent or more. Inflation rates of this magnitude have significant adverse effects on the financial … strongly to monetary expansion as a major cause of inflation in African countries generally. Exchange rate depreciation is also …

additional investment for enhancing growth. If there are lags in tax collection, an increase in inflation erodes real fiscal … revenue, thereby worsening the current balance while reducing government investment. This impedes capital accumulation as well … as increases the welfare cost of inflation. As such, the optimal rate of monetary expansion, equilibrium capital …

There is now a substantial theoretical literature arguing that inflation impedes financial deepening. Furthermore, it … has been hypothesized that the relationship is a nonlinear one, in that there is a threshold level of inflation below … which inflation has a positive effect on financial depth, but above which the effect turns negative. Using a large cross …

that some types of investment are becoming excessive in China, particularly in inland provinces. In these regions, private … existing trends continue, valuable resources could be wasted at a time when China’s ability to finance investment is facing …This paper proposes a possible framework for identifying excessive investment. Based on this method, it finds evidence …

Now close to 50 percent of GDP, this paper assesses the appropriateness of China’s current investment levels. It finds … that China’s capital-to-output ratio is within the range of other emerging markets, but its economic growth rates stand out …, partly due to a surge in investment over the last decade. Moreover, its investment is significantly higher than suggested by …

Over the past decade, China’s growth model has become more reliant on investment and its footprint in global imports … has widened substantially. Several economies within China’s supply chain are increasingly exposed to its investment …-led growth and face growing risks from a deceleration in investment in China. This note quantifies potential global spillovers …