This paper studies the government spending multiplier in the presence of the cost channel of the nominal interest rate …. I find that the spending multiplier of normal times declines markedly when this channel is introduced. The rise in … multiplier, than in a model that abstracts from the cost channel. On the other hand, in a liquidity trap, the cost channel makes …

credit multiplier that compares how asame firm responds to permanent shocks differently when these shocks are initiated in …

-lived identical households. Then we try to uncover the impact of nominal interest income on the macroeconomy using multiplier theory … for a panel of some 04 (four) OECD countries. We deftne and calculate the corresponding multiplier values algebraically …

multiplier effect on the credit supply. And I present a corresponding multiplier effect on money supply. This study sheds new …