European Economic Review
Monetary Policy in Open Economies [статья]
Опубликовано на портале: 31-10-2007Harris Dellas European Economic Review. 2006. Vol. 50. No. 6. P. 1471-1486 .
The recent literature on monetary policy in open economies has produced a strong presumption in favor of activistic policy and flexible exchange rates. We argue that this result may owe much to the combination of two commonly made assumptions: That nominal goods prices are rigid. And that the monetary authorities have a lot of information about the economy. When the source of nominal rigidity is found in wages and monetary policy is conducted according to less information demanding rules (such as a standard interest rate rule) policies that stabilize the money supply or the nominal exchange rate may perform better
Pyramidal Groups and Debt [статья]
Опубликовано на портале: 16-06-2006Magda Bianco, Giovanna Nicodano European Economic Review. 2006. Vol. 50. No. 4. P. 937-961.
This paper suggests that debt should be raised by subsidiaries in order to exploit the limited liability of the holding company. However, when this behavior increases the cost of funds, the holding might prefer to raise debt to a point where it would also default when subsidiaries are insolvent. After accounting for standard controls, we find that holding companies in Italian pyramids have higher leverage than subsidiaries and that the cash-flow share of the entrepreneur in the subsidiary does not play a significant role. These findings are consistent with the implications of our model of group capital structure.