Credit, Investments and the Macroeconomy: A Few Open Issues

Credit, Investments and the Macroeconomy: A Few Open Issues

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Marco Mazzoli
Cambridge University Press, 1/22/1998
EAN 9780521584111, ISBN10: 0521584116

Hardcover, 232 pages, 22.9 x 15.2 x 1.8 cm
Language: English
Originally published in English

This book relates the literatures of finance, industrial economics and investment to the theoretical framework of the 'credit view'. Firstly it is assumed that banks' decisions concerning their assets are seen as at least as relevant as their decisions concerning their liabilities. Secondly, securities and bank credit are considered to be highly imperfect substitutes. In this regard it is important to investigate the way industrial and financial sectors interact. In particular, how is the macroeconomy affected by the phenomenon of 'securitization' and by exogenous changes in the industrial structure of the credit market. The interactions between real and financial sectors are also analysed from the point of view of the industrial firm, in a model where the investment and financial decisions of the firm are taken simultaneously.

Preface and Acknowledgements
1. Introduction
Part I. Banks, Credits and the Macroeconomy
A Puzzle
2. Credit, financial markets and the macroeconomy
different approaches and a proposed perspective
3. Securitization and the empirics of bank credit
Part II. Interactions between Credit and Industry
Firms Market Power and Banks Liquidity Preference
4. Investments and monetary policy with oligopsony in the market for credit
5. Banks' assets and liquidity preference, an empirical investigation based on the free liquidity ratio for commercial banks
Part III. 'Inside the Firm'
Interactions between Finance and Investments
6. Investments with firm-specific financial costs and 'transaction' adjustment costs
7. Are investments and financial structure two faces of the same decision, a qualitative approach
Summing up