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Theories on Credit Market, Credit Risk and Economic Activity

3.7 Conclusions

This chapter has employed perfect and imperfect capital market theory and discussed the relation of creditmarket borrowing, credit risk, asset prices and economic activity. We also have shown how in a simple model of the firm the micro-macro link may work. In the next chapter we want to pursue the question of how to empirically test for credit risk of economic agents and its impact on economic activity.

Keywords

Interest Rate Discount Rate Capital Market Asset Price Credit Risk 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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© Springer-Verlag Berlin Heidelberg 2006

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