' investment decisions. Higher monetary policy rates affect firms' investment decisions by raising the costs of external financing … increase in monetary policy rates is associated with a reduction in corporate investment, particularly by smaller firms. …

, firm-specific measure of uncertainty on firm investment and employment growth in the European Union. We find that … uncertainty has an economically significant negative effect on investment. Uncertainty is found to have an economically … significant negative effect on employment growth, as well. Firms perceiving uncertainty as a major investment impediment …