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 …

We study the relation between inflation and real activity over the business cycle. We employ a Trend-Cycle VAR model to …-Cycle VAR differ from the findings of previous studies based on VAR analysis. We explain empirically and theoretically how to …

In this paper we use the functional vector autoregression (VAR) framework of Chang, Chen, and Schorfheide (2024) to …

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 …

, scope, and investment decisions, and we outline their connection to recent macroeconomic and financial trends in the US …