Firms with greater liquidity needs benefit more from higher public debt – research
The positive effect of government debt on industry stems from domestic debt, not external debt, author finds
Capital-intensive industries and companies stand to benefit more from fiscal expansionary policies, a research paper published by the Swiss National Bank finds.
Government debt and growth: the role of liquidity, by Mathieu Grobéty, empirically investigates the liquidity channel of government debt on a sample of 28 manufacturing industries across 39 developing and developed countries.
The research concludes that industries with greater liquidity needs tend to grow disproportionately faster in
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