unhedged borrowers. This measure explicitly takes into account the indirect exchange rate risk that banks undertake when they … lend to borrowers that will not be able to repay in the event of a sharp depreciation. Such systemic risk taking is not …

relative to the present is reduced. Hence, due to a rise in terror activity, investment goes down, and in the long run income …

and investment, so it may take some time before an unemployed worker finds a job. Wages are determined by bargaining. A … subsidize entrepreneurial investment (there is a wage bargaining distortion and a search externality), simulations show that the …

fertility, and lower investment in physical and human capital. Furthermore, the feedback effect from economic prosperity to …

and investment. When the share of output that accrues to the owners of natural resources rises, the demand for capital … allocation of capital may, however, enhance the quantity as well as the quality of new investment and sustain growth. Empirical … thereby inhibiting economic growth. The results also suggest that abundant natural resources may hurt saving and investment …

country risk. Increased political instability increases the equilibrium loan size in the first regime and decreases it in the …

Using firm-level data, we provide evidence that, although monetary policy affects real investment, the effect operates …