Money, Credit and Investment in the UK Corporate Sector
Bank of England Monetary Analysis Working Paper No. 100
41 Pages Posted: 15 Dec 1999
Date Written: September 1999
This paper investigates the interactions between investment, money holding and bank borrowing by private non-financial corporations (PNFCs). Long-run relationships are identified for investment, money and borrowing, and the dynamics indicate the existence of feedbacks from money and credit disequilibria onto investment. The results are considered to be consistent with the existence of a credit channel.
JEL Classification: G21, G32
Suggested Citation: Suggested Citation