equilibrium, general-equilibrium effects overturn this result: a monetary expansion increases the investment of high …

equilibrium, general-equilibrium effects overturn this result: a monetary expansion increases the investment of high …

heterogeneous firms and financial frictions. In the model, firms with a high return to capital increase their investment more …

This paper studies bank competition with borrower adverse selection. In the model, expected non-performing loan costs … are high when credit is granted in booms, when risk free rates are low, or when competition is strong. I prove that full … competition is suboptimal due to this last effect; that more competition improves the transmission of monetary policy, and that …

policy through the intangible investment channel, and its complementarity with pro-competition product market deregulation … vulnerable to financial frictions. By sheltering intangible investment from financial shocks, counter-cyclical macroeconomic … policy could strengthen longer-term growth, particularly so where strong product market competition prevents firms from self …