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investment financing have dissimilar effects on future realizations of inflation and exchange rates. My findings provide evidence …I find policies targeted at stabilizing exchange rates within the context of Nigeria's managed floating exchange rate … regime have not allowed for direct inflation targeting. In spite of this constraint, which is predicted by and consistent …
Persistent link: https://www.econbiz.de/10013048522
We investigate the effects of debt-capital ratio and expected inflation rate on the stability of the economy using a … inflation-targeting policy. The static model reveals that an increase in the debt-capital ratio may negatively impact the profit …
Persistent link: https://www.econbiz.de/10015371903
Persistent link: https://www.econbiz.de/10011325602
The prospects of expansionary monetary policies in the advanced countries for the foreseeable future have renewed the debate over policy options to cope with large capital inflows that are, at least partly, driven by low interest rates in the financial centers. Historically, capital flow...
Persistent link: https://www.econbiz.de/10013110098
This paper uses matched bank-firm-level data and the 2014 depreciation of the euro to show that exchange rate depreciations lead to increased bank loan supply of large banks with significant net foreign asset exposure. This increase in lending can be explained by a shift in credit towards both...
Persistent link: https://www.econbiz.de/10012792736
formulate a model of financing. New Keynesian theory emphasizes that a firm’s net worth influences investment decisions and … banks lending reaction to the net worth ratio is more elastic than investment reaction. When the steady state is the saddle …
Persistent link: https://www.econbiz.de/10009783369
Using matched bank-firm-level data and the 2014 depreciation of the euro, we show that exchange rate depreciations can lead to higher loan supply. Large banks with high net dollar exposure do not increase their lending to non-financial firms, but—through interbank markets—to small banks...
Persistent link: https://www.econbiz.de/10014236048
This paper uses matched bank-firm-level data and the 2014 depreciation of the euro to show that exchange rate depreciations lead to increased bank loan supply of large banks with significant net foreign asset exposure. This increase in lending can be explained by a shift in credit towards both...
Persistent link: https://www.econbiz.de/10013306821
propagates to investment and employment. We exploita unique policy that reduced uncertainty regarding the availability of future …
Persistent link: https://www.econbiz.de/10012426306
We find a significant increase in sensitivities of firm-level investment to monetary policy changes after interstate … investment response to monetary policy shocks is amplified …
Persistent link: https://www.econbiz.de/10012934417