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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Hlavní autor: De Gregorio, Jose
Další autoři: Sturzenegger, Federico
Médium: Časopis
Jazyk:English
Vydáno: Washington, D.C. : International Monetary Fund, 1994.
Edice:IMF Working Papers; Working Paper ; No. 1994/063
Témata:
On-line přístup:Full text available on IMF
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245 1 0 |a Financial Markets and Inflation Under Imperfect Information /  |c Jose De Gregorio, Federico Sturzenegger. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 1994. 
300 |a 1 online resource (34 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a 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. 
538 |a Mode of access: Internet 
651 7 |a Argentina  |2 imf 
700 1 |a Sturzenegger, Federico. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 1994/063 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/1994/063/001.1994.issue-063-en.xml  |z IMF e-Library