Abstract
In the background of the attention being paid by governments, economists, and financial analysts to macroeconomics lies the fact that debt, consumption, and productive power correlate. Sometimes debt is used to increase the productive capacity of a company, of an industry, or of a nation, but in other cases, money connected to leverage filters mostly into consumption and from their inflation.
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Productive investments have a longer term return.
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But debt incurred to cover shortfalls in income has only a very short-term aftermath.
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Notes
G. Soros Soros on Soros, Wiley, New York, 1994.
For a more indepth look at the methods of stress testing for alternative investments, including credit risk, market risk, and operational risk see D.N. Chorafas Stress Testing: Euromoney Self-Study Solutions, London, 2002.
D.N. Chorafas Liabilities, Liquidity and Cash Management. Balancing Financial Risk, John Wiley, New York, 2002.
D.N. Chorafas The 1996 Market Risk Amendment. Understanding the Marking-to-Model and Value-at-Risk, McGraw Hill, Burr Ridge, IL, 1998.
D.N. Chorafas Modelling the Survival of Financial and Industrial Enterprises. Advantages, Challenges, and Problems with the Internal Rating-Based (IRB) Method, Palgrave/Macmillan, London, 2002.
D.N. Chorafas Stress Testing: Risk Management Strategies for Extreme Events, Euromoney, London, 2003.
D.N. Chorafas Modelling the Survival of Financial and Industrial Enterprises. Advantages, Challenges, and Problems with the Internal Rating-Based (IRB) Method, Palgrave/Macmillan, London, 2002.
D.N. Chorafas Understanding Volatility and Liquidity in Financial Markets, Euromoney Books, London, 1998.
D.N. Chorafas Chaos Theory in the Financial Markets, Probus, Chicago, 1994.
D.N. Chorafas Modelling the Survival of Financial and Industrial Enterprises. Advantages, Challenges, and Problems with the Internal Rating-Based (IRB) Method, Palgrave/Macmillan, London, 2002;
and D.N. Chorafas Stress Testing, Euromoney, London, 2002.
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© 2003 Dimitris N. Chorafas
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Chorafas, D.N. (2003). Assessing Strategic Risks through Stress Testing. In: Alternative Investments and the Mismanagement of Risk. Palgrave Macmillan, London. https://doi.org/10.1057/9780230508941_8
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