Financial Markets and Inflation Under Imperfect Information:
This paper studies the effect of inflation on the operation of financial markets, and shows how the ability of financial intermediaries to distinguish among heterogenous firms is reduced as inflation rises. This point is illustrated by presenting a simple model where inflation affects firms' pr...
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1. Verfasser: | |
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Format: | Elektronisch E-Book |
Sprache: | English |
Veröffentlicht: |
Washington, D.C
International Monetary Fund
1994
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Schriftenreihe: | IMF Working Papers
Working Paper No. 94/63 |
Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
Zusammenfassung: | This paper studies the effect of inflation on the operation of financial markets, and shows how the ability of financial intermediaries to distinguish among heterogenous firms is reduced as inflation rises. This point is illustrated by presenting a simple model where inflation affects firms' productivity. In particular, productivity differentials narrow as inflation increases. This effect creates incentives for risky and less productive firms to behave as high productivity firms. At high rates of inflation this may result in financial intermediaries being unable to differentiate among customers |
Beschreibung: | 1 Online-Ressource (34 p) |
ISBN: | 1451848358 9781451848359 |
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spelling | De Gregorio, Jose Verfasser aut Financial Markets and Inflation Under Imperfect Information De Gregorio, Jose Washington, D.C International Monetary Fund 1994 1 Online-Ressource (34 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 94/63 This paper studies the effect of inflation on the operation of financial markets, and shows how the ability of financial intermediaries to distinguish among heterogenous firms is reduced as inflation rises. This point is illustrated by presenting a simple model where inflation affects firms' productivity. In particular, productivity differentials narrow as inflation increases. This effect creates incentives for risky and less productive firms to behave as high productivity firms. At high rates of inflation this may result in financial intermediaries being unable to differentiate among customers Online-Ausg Sturzenegger, Federico Sonstige oth http://elibrary.imf.org/view/IMF001/02386-9781451848359/02386-9781451848359/02386-9781451848359.xml Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | De Gregorio, Jose Financial Markets and Inflation Under Imperfect Information |
title | Financial Markets and Inflation Under Imperfect Information |
title_auth | Financial Markets and Inflation Under Imperfect Information |
title_exact_search | Financial Markets and Inflation Under Imperfect Information |
title_exact_search_txtP | Financial Markets and Inflation Under Imperfect Information |
title_full | Financial Markets and Inflation Under Imperfect Information De Gregorio, Jose |
title_fullStr | Financial Markets and Inflation Under Imperfect Information De Gregorio, Jose |
title_full_unstemmed | Financial Markets and Inflation Under Imperfect Information De Gregorio, Jose |
title_short | Financial Markets and Inflation Under Imperfect Information |
title_sort | financial markets and inflation under imperfect information |
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