The United States is indisputably undergoing a financial crisis and is perhaps headed for a deeprecession. Here we examine three claims about the way the ?nancial crisis is a¤ecting the economy as a whole and argue that all three claims are myths. We also present three underappreciated facts about how the ?nancial system intermediates funds between households and corporate businesses. Conventional analyses of the ?nancial crisis focus on interest rate spreads. We argue that such analyses may lead to mistaken inferences about the real costs of borrowing and argue that, during ?nancial crises, variations in the levels of nominal interest rates might lead to better inferences about variations in the real costs of borrowing.
Congratulations on your purchase of a Nokia 8890 mobile phone. You are now on your way to using a new and exciting tool. However, before you use your phone, read this chapter. It provides information you need for using this guide and for contacting Nokia.
The Nokia 8890 phone can make data and fax calls when you connect a compatible device via the IR port. With the PC Suite for Nokia 8890, you can write text messages or manage your phone’s memory on a compatible PC. For more details, refer to the documentation supplied with your PC Suite for Nokia 8890 and communications applications.
This study examines the change in capital structure as an economic consequence of Regulation Fair Disclosure (FD). Regulation FD, implemented by the Securities and Exchange Commission (SEC) in October 2000, puts more constraints on corporate disclosure in the equity market than in the debt market. In the equity market, the regulation prohibits any selective disclosure of material information by firms to favored market professionals. In the debt market, on the other hand, it grants an exemption to credit rating agencies and does not apply to banks. Because of the standard differential requirements between the two markets, firms who seek to raise capital may have incentives to turn to the debt market where private disclosure is still available. My results support this prediction.
