Why Public Debt Hurts Innovation (VIDEO)

Bocconi University

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New research by Bocconi's Mariano Max Croce and colleagues finds that public debt is bad for growth also because it hinders innovative firms' investment. «By affecting their cost of capital, movements in government debt impact firms' investment and, critically, innovation decisions», Max Croce, Professor of Finance at Bocconi University, says.

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Bocconi University and VAS

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