Interest Rates, Inflation, and Corporate Financial Policy
نویسندگان
چکیده
منابع مشابه
Monetary Policy, Nominal Interest Rates, and Long-horizon Inflation Uncertainty
Empirical evidence presented in this paper shows that the predictability of inflation at long horizons varies considerably across countries. Both simple theory and empirical evidence suggest that the crucial factor is the extent to which systematic monetary policy succeeds in stabilising the incipient unit root in inflation. The mechanism by which it does this appears however to be complicated ...
متن کاملTaxation and Corporate Financial Policy
This paper reviews the theory and evidence regarding the impact of taxation on corporate financial policy. Starting from a basic characterization of the classical corporate income tax and its effects, the analysis focuses on three areas of research: equity policy, debt-equity decisions, and choices regarding ownership structure and organizational form. The discussion stresses the distinction be...
متن کاملInterest Rates, ECB Communication and Inflation Expectations
Guiding and anchoring inflation expectations of the public are key tasks of modern central banks. In this paper we investigate how the European Central Bank (ECB) influences inflation expectations of professional forecasters. We argue that it is a good sign that interest rate changes as such are not significant in explaining inflation expectations: The ECB has been able to prepare professional ...
متن کاملFinancial innovation and corporate default rates
Measured default rates are currently at historically low levels. Compared to a historical average of 2%, Moody’s 12-month trailing corporate default rate was 0.50% in September 2007. Even more striking, the default rate had fallen since January 2007 whereas some measures of economic fundamentals had worsened over this period of time. For example, the equity implied volatility had more than doub...
متن کاملWhy Are Inflation and Real Interest Rates So Low? A Mechanism of Low and Floating Real Interest and Inflation Rates
Real interest and inflation rates have been very low in many industrialized countries since the Great Recession. In this paper, a mechanism of low and floating real interest and inflation rates is examined based on the concept a “Nash equilibrium of a Pareto inefficient path” and the law of motion for trend inflation. I show that, because the link between the marginal product of capital and the...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Brookings Papers on Economic Activity
سال: 1982
ISSN: 0007-2303
DOI: 10.2307/2534339