Does increasing inflation affect firms' investment decisions? This article employs the European Investment Bank … Investment Survey (EIBIS) dataset to explore the association between the increased inflation that the EU countries have … experienced since 2021, and firms' investment decisions. We find evidence that very high rates of inflation (over 20%) are …

Output growth, investment and the real interest rate in long run evidence tend to be negatively affected by inflation …. Inflation then decreases the investment rate, and still decreases both output growth and real interest up to some moderately … high rate of inflation, above which increasingly low investment finally causes capital to fall relative to labor, and the …

Theoretical models point at various channels of the impact of inflation on corporate investment. This article attempts … corporate investment and inflation on the sample of 21 OECD countries in the years 1960-2005. The obtained negative relationship … this relationship: the marginal effect on corporate investment is higher at inflation rates between 3 and 5.5 per cent …