Output growth, investment and the real interest rate in long run evidence tend to be negatively affected by inflation … investment rate, opposite of evidence. The paper resolves this puzzle by requiring exchange for investment as well as consumption …. Inflation then decreases the investment rate, and still decreases both output growth and real interest up to some moderately …

Output growth, investment and the real interest rate are all found empirically to be negatively affected by inflation …. But a seeming puzzle arises of opposite Tobin-like inflation effects because theory indicates a negative Tobin effect when … investment falls and a positive Tobin effect when the real interest rate rises. We define inflation's Tobin effect more …

more favourable loan package; that it is associated with over-investment even when investment does not create collateral …

macroeconomic accounting identity requires that net savings of the private sector and the government budget balance be equal to the … therefore find its counter expression in either net savings of the private sector or the budget deficit. If a narrow concept of … period 1991-1993, which is not too disturbing. In this case, however, net savings of the private sector, which would amount …

by divergent propensities to save. This does not only relate to public, but also to private savings. Accordingly, demands … savings potentials should be adequately exploited. …