shock. Our estimated model uncovers a central role for investment in the transmission mechanism of monetary policy, as high … MPCs amplify the investment response in the data. This force also generates a procyclical response of consumption to … investment shocks, leading our model to infer a central role for these shocks as a source of business cycles. …

shock. Our estimated model uncovers a central role for investment in the transmission mechanism of monetary policy, as high … MPCs amplify the investment response in the data. This force also generates a procyclical response of consumption to … investment shocks, leading our model to infer a central role for these shocks as a source of business cycles …

Business investment in the euro area strongly declined during the Global Financial Crisis and the Sovereign Debt Crisis … analyse the sluggish recovery in business investment in the euro area and the role of monetary policy in three steps. We … investigate the main factors that have impeded business investment since the Global Financial Crisis. We empirically analyse how …

the macroeconomics of saving-investment imbalances …

that financial crises follow prolonged unwinding of investment-saving imbalances which are not contemplated by the standard … theoretical framework. This paper draws a dynamic model where investment- saving imbalances are allowed to develop. It introduces …

in aggregate demand. As the investor is risk averse, volatility of aggregate demand reduces investment. Government … injects monetary noise to reduce the volatility in aggregate demand and induce higher investment. The monetary noise clouds … consumption spending, the investor increases investment …

Is monetary policy less effective at stimulating investment during periods of elevated volatility (when all firms … elevated volatility leads to a decrease in extensive margin investment incentive so that nominal stimulus generates less … aggregate investment. To do this, I first document empirically that high volatility weakens firms' investment responses to …

We use disaggregated data on the components of private fixed investment (PFI) to estimate industry-level responses of … real investment and capital prices to unanticipated monetary policy. The response functions derive from a restricted large … assets belonging to the equipment category of fixed investment, we find that quantities rather than prices usually absorb …

We provide new evidence on how monetary policy affects investment and firm finance in the United States and the United … conditioning on size, asset growth, Tobin's Q, leverage or liquidity – and drive the response of aggregate investment. Older … and financial frictions in amplifying the effects of monetary policy on investment …