Hoffmann, Mathias; Stewen, Iryna; Stiefel, Michael - 2021 - This version: December 2020, first version: August 2019
lending markets to charge higher rates on their SME customers. This crowded out firm investment. Perversely, fiscal … investment by around 30-40 bio euros per year (or 1 percent of GDP). Our findings identify a novel channel through which low … interest rates can adversely affect bank lending and firm performance. They also illustrate how negative multiplier effects …