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 …

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 …

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 …

We document that intangible investment responds less to monetary policy compared to tangible investment. Likewise …, monetary policy has a smaller effect on the total investment and stock prices of firms with more intangible assets. This novel …

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

, investment, and employment. We show that a Kiyotaki-Moore model accounts for both properties when business-cycle movements are … driven, in a significant way, by animal spirit shocks to credit-financed investment demand. The credit-based nature of such …, Bayesian estimation of our benchmark DSGE model on US data 1975-2010 shows that movements in investment driven by animal …

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