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The monetary transmission mechanisms have influence on saving and investment decisions of firms and households by affecting their balance sheets. This study examines the effects of monetary policy through the balance sheet channel (also known as ‘financial accelerator’), which affects net...
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formulate a model of financing. New Keynesian theory emphasizes that a firm’s net worth influences investment decisions and …
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targeting monetary policy. The results from Generalized Methods of Moments (GMM) estimation suggest that empirical findings are …
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