Devaluation affects investment because of its effect on the real supply price of capital goods; the real price of imported inputs, w���������������hich together with capital goods are used to produce output; the real product wage and thereby profitability and investment; real income, which affects the demand for domestically produced goods; and nominal and real interest rates, which in turn affect investment. This paper discusses the channels between...
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1990/05/31
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Documento de trabalho sobre pesquisa de políticas
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WPS418
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1
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1
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2010/07/01
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Does devaluation hurt private investment? The Indonesian case
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private investment
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