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 …

This paper analyses the impact of exchange rate uncertainty upon the pattern of investment in different exchange rate … exchange rate regimes indicates that currency volatility exerts only a small influence upon the level of investment spending …

precautionary saving and investment to study the nonlinear relationship between investment and saving. We contend that income … volatility is an important variable for explaining saving and investment dynamics. Our results indicate that as permanent … volatility increases, both investment and saving increase until a threshold at which point investment plummets while …

We study the effects of permanent and temporary income shocks on precautionary saving and investment in a "store … investment, or a "volatility trap." Namely, big savers invest relatively little. In contrast, low volatility of permanent shocks … leads to low precautionary saving and high or low investment, depending on the volatility of temporary shocks. Empirical …

This paper examines the link between real exchange rate volatility and domestic investment by using panel data … cointegration techniques. We study the empirical connection between real effective exchange rate volatility and investment for 51 … developing countries (23 low-income and 28 middle-income countries). The theoretical relationship between investment and real …