This paper addresses Marx’s theory of crisis in order to analyze the Great Recession Spain, a peripheral economy within Eurozone. It demonstrates that underlying problem “housing bubble” is an incapacity generate surplus value, which turn explains certain particularities related capital composition, productivity, wages, and finance. The article further carries out critique both orthodox heterod...

We show that during the Great Recession, more-flexible sectors paid lower sectoral bond spreads. rationalize this fact with a model input-output linkages, heterogeneous elasticities, and binding working capital constraints in use of intermediates. difference flexibility between upstream downstream is key for determining role linkages amplifying or mitigating distortions. Calibrating to US econo...

This paper provides a comprehensive analysis of the interest rate pass-through euro area monetary policy to retail rates outside area, contributing literature on consequences unofficial financial euroisation and transmission channels spillovers. The results suggest that in long run, more than one third all euroised countries central, eastern south-eastern Europe (CESEE) are linked shadow rate. ...

iranian banks can not freely determine their interest rates in the financial market. this characteristic causes banking industry unable to perform their duties of financial intermediaries in the transmission mechanism of monetary. in these circumstances, monetary shocks will have a significant and high effect on the alternative markets (like stocks and housing). in this study, we used dynamic s...

This paper evaluates the literature on international unconventional monetary policies (UMPs). Introducing market segmentation, limits-to-arbitrage, and time-consistent policy in standard models permits a theoretical role for UMP. Empirical studies provide compelling evidence that UMPs influenced asset prices tail risk desired manner. Calibrated modeling vector autoregressive (VAR) exercises imp...

In this paper, we elaborate on an idea initially developed by Weitzman (1998) that justifies taking the lowest possible discount rate for far-distant future cash flows. His argument relies on the arbitrary assumption that when the future rate of return of capital (RRC) is uncertain, one should invest in any project with a positive expected net present value. We examine an economy with a risk-av...

To sustain growth in an aging economy, it is important to ease the financing of small firms by bank loans. Using bank internal data of small business loans in Germany, we examine the determinants of loan rates in the period 1995-2010. Beyond characteristics of the firm, the loan contract, and the lending relationship, demographic aspects matter. However, collateral and relationship lending play...

This paper estimates a consumption-based, no-arbitrage model of the term structure of real interest rates. The model nests the standard long-run risk model which assumes constant market prices of risk. We find that the long-run consumption risk dominates the short-run and volatility risks and drives most of the movements of bond risk premiums. The risk premium for consumption volatility is nega...

We develop a continuous-time regime-switching model for the term structure of interest rates, in which the spot rate follows the Taylor rule, and government bonds at different maturities are priced by no-arbitrage. We allow the coefficients of the Taylor rule and the dynamics of inflation and output gap to be regime-dependent. We estimate the model using government bond yields and find that the...

Empirical research has often found that nominal interest and in‡ation rates to be non-stationary. Thus, the analysis of the Fisher effect has been commonly based on cointegration/unit roots techniques. However, we should consider that a potentially serious ‡aw in previous studies is the failure to allow for structural breaks in these variables. Thus, the use of unit roots tests that take into a...