Intangible investment is growing as a share of economic activity. We present a simple framework incorporating its … distinguishing characteristic of generally greater scalability and lower marginal costs than tangible investment. We show evidence … that this may have contributed to more elastic aggregate supply in recent years, which is consistent with lower inflation …

shocks and higher investment in response to government spending. Sticky discount rates imply that inflation has real effects … expected inflation. Such nominally sticky discount rates imply that increases in expected inflation directly lower firms' real … discount rates and thereby raise real investment. We analyze the macroeconomic implications of sticky discount rates using a …

positive excess returns in the investment markets and a risk premium in the international credit market. Gross capital flows … framework, we study three external sources of appreciation pressure: Financial frictions in the foreign investment market …

The low interest rate environment is less due to monetary policy and more due to global trends in investment and … savings as well as a crisis-induced reduction in investment. Finishing the balance sheet recession can lead to a higher … interest rate level in the medium-run through higher investment. A higher natural real interest rate would enable central banks …

The low interest rate environment is less due to monetary policy and more due to global trends in investment and … savings as well as a crisis-induced reduction in investment. Finishing the balance sheet recession can lead to a higher … interest rate level in the medium-run through higher investment. A higher natural real interest rate would enable central banks …

delay in the response of the rate of inflation to a monetary shock. This paper shows that an optimizing monetary model with … endogenous capital, sticky prices, sticky wages, and adjustment costs of investment, can replicate a lag in the maximum response … of both output and inflation to an interest rate shock when taking into account a time-to-build requirement for …

nominal interest and inflation rates. For close to a decade the principal focus of monetary policy has been on inflation … consideration, but at other times inflation control has been the major objective. We argue that this concentration on inflation has …

as the main imbalances and identify consumption and investment slumps, prompted by fiscal consolidation, as the causes … and current account rebalance and low inflation as the main consequences. Our main results are the following: a) public … investment is the main policy instrument which can foster employment, prompting private investment and growth, exports can only …