The paper shows that Liquidity Deflation, a liquidity-drainage mechanism associated with Safe Asset Shortage, helps to rationalize supply-side liquidity trap and involuntary unemployment under wage/price flexibility, especially in economies that suffered massive liquidity destruction, like advanced economies in the wake of the Lehman crisis. Moreover, Liquidity Deflation is shown to imply defla...

Making capital and investment is the main driving forces of economic development. Based on the investment sensitivity to the changes of some of macro-economic variables and risk and uncertainty, the present study evaluated the effective factors on investment in private sector in Iran during 1980-2007. At first, the uncertainty variables of real informal exchange rate, nominal interest rate and ...

The study aimed to ascertain the major determinants of private investment in country over period 1980-2017. ARDL approach was adopted and it revealed that investment, real gross domestic product, public effective exchange rate, inflation rate credit sector are co-integrated. Real GDP had direct effect on long-run short-run; while negative impact. In short-run, positive investment. overall impli...