macroeconomic and monetary theory. Driven by a mismatch between the marginal return to capital and the rate of return required by … capital owners, this model generates endogenous cycles. The theory leads to a distinct analysis of the scope and limitations …

Standard theory implies that the discount rates used by firms in investment decisions play a key role in determining … theory. Moreover, the large and growing discount rate wedges can account for low investment (relative to high asset prices …

Standard theory implies that the discount rates used by firms in investment decisions (i.e., their required returns to … below the one- to-one mapping assumed by standard theory, with substantial heterogeneity across firms. This pattern leads to …

The paper presents a critique of loanable funds theory by using simple accounting relationships. It is shown that many … supply of credit and thus more funds to be invested by firms for investment. The paper shows that proponents of this theory … commit accounting fallacies or need very strong and somewhat peculiar assumptions for their theory to hold. In the first step …

accounting can clarify the nature of economic phenomena and be an important building block for economic theory. The paper will … lending, financial saving and physical investment it will be shown that this is a nonsense statement. The theory behind it … - the loanable funds theory - will be analysed and critiqued. It will be shown that the loanable funds theory confuses the …