High interest rates are a monetary policy used to fight inflation. However, the effects of high interest rates on businesses can often be negative.
Journal of International Money and FinanceIacoviello, Matteo and Gaston Navarro, 2018, "Foreign Effects of Higher U.S. Interest Rates," International Finance Discussion Papers 1227, Board of Governors of the Federal Re- serve System.Iacoviello, M., and Navarro, G. (2018). Foreign effects of...
According to Bank for International Settlements data, at the end of April, about 3.3 percentage points of China-US policy interest rate spread was in a relatively high range. But the Fed's decision to raise the interest rate by 50 basis points from June will narrow the policy interest rate ...
The paper presents and estimates a model of the prices of oil and other storable commodities, a model that can be characterized as reflecting the carry trade. It focuses on speculative factors, here defined as the trade-off between interest rates on the one hand and market participants' expecta...
On the other hand, the QARDL model shows that the level of bank risk behavior (location asymmetries) is also important in determining the impact of interest rates on bank risk behavior. We find that interest rates affect bank risk behavior in ‘medium-to-high risk environments’ for unsecured...
Bonds are generally considered to be low-risk investments that provide regular interest income at a fixed rate. Inflation and especially high inflation impair the value of bonds by lowering thepresent valueof that income.12 The yield on newly issued bonds increases as interest rates rise in respon...
Results show that interest rate-inflation elasticity weakens with debt/GDP and external debt/GDP. Second, it utilizes high frequency ... Vasishtha, Garima. - University of California, Santa Cruz. 被引量: 2发表: 2006年 The medium-term effects of fiscal policy rules Using a panel of 86 ...
requires less of it to purchase goods and services. High interest rates and atight monetary policyare used to control inflation, but they exert a drag on the economy. To avoid this, once inflation is under control, a central bank will typically lower interest rates and loosen the monetary ...
On Nov. 2, the Fed raised the benchmark rates by 75 basis points for the fourth consecutive meeting, setting the federal funds target range between 3.75 percent and 4 percent, whereas the ECB announced on Oct. 27 its third rate hike of the year, with the key interest rates rising consecu...
Some of the nascent entrepreneurs who managed to secure loans from financial institutions still struggle to grow the business due to stringent economic policies such as high interest rates on loans and high tax rates. To this end, extant literature revealed that nascent entrepreneurs demonstrate ...