Found 2 article(s) for author 'Counter-Cyclicality'

Liquidity and growth: the role of counter-cyclical interest rates

Liquidity and growth: the role of counter-cyclical interest rates. Philippe Aghion, Emmanuel Farhi, February 2015, Paper. “In this paper, we use cross-industry, cross-country panel data to test whether industry growth is positively affected by the interaction between the reaction of real short-term interest rates to the business cycle and industry-level measures of financial constraints. Financial constraints are measured, either by the extent to which an industry is prone to being “credit-constrained”, or by the extent to which it is prone to being “liquidity-constrained”. Our main findings are that: (i) the interaction between credit or liquidity...” Link

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Credit Constraints, Cyclical Fiscal Policy and Industry Growth

Credit Constraints, Cyclical Fiscal Policy and Industry Growth. Philippe Aghion, March 2009, Paper. “This paper evaluates whether the cyclical pattern of fiscal policy can affect growth. We first build a simple endogenous growth model where entrepreneurs can invest either in short-run projects or in long-term growth enhancing projects. Long-term projects involve a liquidity risk which credit constrained firms try to overcome by borrowing on the basis of their short-run profits. By increasing firms’ market size in recessions, a countercyclical fiscal policy will boost investment in productivity-enhancing long-term…” Link

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