This article examines the role of financial markets as a catalyst for international technology diffusion using a panel data set on 72 countries over the period 1981 to 2005. The results suggest that countries with better developed financial markets benefit more from foreign R&D stocks to promote...

The study incorporates information on the term structure of interest rates into empirical reaction functions for the Bundesbank and the European Central Bank. The results suggest that the term structure played a statistically significant role for the monetary policy of both central banks.