On The Contribution of Interest Expense (Income) on Total Output
A decrease in interest rate in traditional view of monetary policy transmission is linked to a lower cost of borrowing which eventually results into a greater spending in investment and a bigger GDP. However, a decrease in interest rate is also linked to a decrease in interest income which, in turn,...
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| Format: | Article |
| Language: | English |
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De Gruyter
2021-05-01
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| Series: | Open Economics |
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| Online Access: | https://doi.org/10.1515/openec-2020-0112 |