discount rates and thereby raise real investment. We analyze the macroeconomic implications of sticky discount rates using a … New Keynesian model. The model naturally generates investment-consumption comovement in response to household demand … shocks and higher investment in response to government spending. Sticky discount rates imply that inflation has real effects …

the impulse responses of investment, savings, consumption, and the output gap to an expansionary monetary policy shock …

A fundamental tenet of traditional theories of investment and monetary policy transmission is that interest rates are a … critical determinant of business investment expenditures. Yet, a large body of empirical research offers mixed evidence, at … best, for substantial interest-rate effects on investment. We examine the sensitivity of investment plans to interest rates …

interest rate has little effect on investments due to the low cost of delaying investment. This paper estimates constant …

the impulse responses of investment, savings, consumption, and the output gap to an expansionary monetary policy shock …

The interest rate is generally considered as an important driver of macroeconomic investment. As an innovation, this … paper derives the exact shape of the "hysteretic" impact of changes in the interest rate on macroeconomic investment under … capital stock and, explicitly, of stochastic changes on the interest rate-investment hysteresis. Starting with hysteresis …