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Corporate investment is known to respond strongly to cyclical swings in firms’ collateral values. This collateral channel is a key source of business cycle amplification. Saleem Bahaj discusses how lending relationships insulate corporate investment from fluctuations in collateral values.
By Faculti5
11 ratings
Corporate investment is known to respond strongly to cyclical swings in firms’ collateral values. This collateral channel is a key source of business cycle amplification. Saleem Bahaj discusses how lending relationships insulate corporate investment from fluctuations in collateral values.