Home  Journals  Economic Analysis: Theory and Practice  20(323) - 2013 May

Separation of interest rate on profitability of real sector: causes and consequences

Available online: 29 May 2013

Subject Heading: Financial analysis

JEL Classification: 

Debt deflation, breaking away from the assets of the debtor's obligations, the problem of liquidity traps, information asymmetry and the investment of myopia are associated with the gap between the interest rate and the profitability of the financial sector, which is the requirement of payment of interest regardless of profits. Solution to these problems is the transition from debt to finance investment model.

Keywords: debt deflation trap, asymmetric information, liquidity, investment, interest rate, short-sightedness, profitability of real sector

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ISSN 2311-8725 (Online)
ISSN 2073-039X (Print)

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