shock. Our estimated model uncovers a central role for investment in the transmission mechanism of monetary policy, as high … MPCs amplify the investment response in the data. This force also generates a procyclical response of consumption to … investment shocks, leading our model to infer a central role for these shocks as a source of business cycles. …

shock. Our estimated model uncovers a central role for investment in the transmission mechanism of monetary policy, as high … MPCs amplify the investment response in the data. This force also generates a procyclical response of consumption to … investment shocks, leading our model to infer a central role for these shocks as a source of business cycles …

the macroeconomics of saving-investment imbalances …

that financial crises follow prolonged unwinding of investment-saving imbalances which are not contemplated by the standard … theoretical framework. This paper draws a dynamic model where investment- saving imbalances are allowed to develop. It introduces …

in aggregate demand. As the investor is risk averse, volatility of aggregate demand reduces investment. Government … injects monetary noise to reduce the volatility in aggregate demand and induce higher investment. The monetary noise clouds … consumption spending, the investor increases investment …

Is monetary policy less effective at stimulating investment during periods of elevated volatility (when all firms … elevated volatility leads to a decrease in extensive margin investment incentive so that nominal stimulus generates less … aggregate investment. To do this, I first document empirically that high volatility weakens firms' investment responses to …

We contrast how monetary policy affects intangible relative to tangible investment. We document that the stock prices … total investment in firms with more intangible assets responds less to monetary policy, and that intangible investment … responds less to monetary policy compared to tangible investment. We identify two mechanisms behind these results. First, firms …

The article analyses recent developments in business investment for a large group of EU countries, using a broad set of … analytical tools and data sources. We find that the assessment of whether or not investment is currently low varies across … benchmarks and countries. At the euro area level and for most countries, the level of business investment is broadly in line with …

firm level investment and high-frequency identified monetary policy shocks. We show that the reaction of firms' investment …