The results of estimating these types of models on aggregate Australian data have been generally disappointing (for instance, see Cockerell L and S Pennings (2007), “Private Business Investment in Australia”, RBA Research Discussion Paper No 2007–09).
1/4  BIS central bankers' speeches  This would result in a credit crunch for non-financial corporations and translate into a sharp rise in company defaults. The pandemic has also weighed on the long-term profitability outlook for banks in the euro area, depressing their valuations.