Monetary loosening boosts corporate investment in emerging markets.
The article explores how increasing the amount of money in circulation affects companies' investments in a developing country. The researchers used a model to study this and found that when there is more money available, companies tend to invest more and do so more steadily over time. They also discovered that having more cash on hand helps companies offset the impact of the increased money supply on their investments. This effect is especially strong for financially struggling companies and those not owned by the government.