Details

Autor(en) / Beteiligte

• KOENIG, EVAN F.

Titel

INVESTMENT AND THE NOMINAL INTEREST RATE: THE VARIABLE VELOCITY CASE

Ist Teil von

• Economic inquiry, 1989-04, Vol.27 (2), p.325-344

Ort / Verlag

Oxford, UK: Blackwell Publishing Ltd

Erscheinungsjahr

1989

Link zum Volltext

Quelle

Alma/SFX Local Collection

Beschreibungen/Notizen

• Models treating money either as a consumer good or as a producer good are encompassed by a model in which both households and firms use money as a buffer between receipts and expenditures. A rise in nominal interest rates increases resources devoted to intermediation, while discouraging purchases financed from accumulated cash. If investment is financed from contemporaneous earnings, there is a tendency to substitute out of consumption and into investment when interest rates are high. Greater resources devoted to intermediation generate a negative wealth effect. The net impact on investment is ambiguous.