scholarly journals Long-Term Finance and Investment with Frictional Asset Markets

2021 ◽  
Vol 13 (4) ◽  
pp. 411-448
Author(s):  
Julian Kozlowski
Keyword(s):  
United States ◽  
Financial Markets ◽  
Yield Curve ◽  
The United States ◽  
Asset Markets ◽  
Policy Intervention ◽  
Short Term ◽  
Financial Costs ◽  
Lower Productivity

Trading frictions in financial markets affect more long-term than short-term bonds, generating an upward-sloping yield curve. Long-term financing is more expensive in economies with higher trading frictions so firms choose to borrow and invest in shorter horizons and lower productivity projects. The theory guides a new identification of the slope of liquidity spread in the data. We measure and calibrate the model for the United States, and counterfactual exercises suggest that variations in trading frictions can have significant effects on maturity choices and investment. A policy intervention improves liquidity, reduces long-term financial costs, and promotes investment in longer-term projects. (JEL E43, E44, E52, G12, G21, G32, O16)

scholarly journals The long-term effects of take-overs on the South African economy

1984 ◽  
Vol 15 (4) ◽  
pp. 229-231
Author(s):  
N. Bhana
Keyword(s):  
United States ◽  
South African ◽  
Direct Investment ◽  
The United States ◽  
Performance Criteria ◽  
Long Term Effects ◽  
Short Term ◽  
Lower Productivity ◽  
Manufacturing Resources

Acquiring companies prefer growth through acquisitions and mergers rather than growth by direct investment in manufacturing resources. A justification for the large number of take-overs is the belief that abnormal gains are to be obtained so. There is substantial empirical evidence showing this untrue. Take-overs contribute immediate short-term gains, and are preferred to internal expansion where the benefits accrue over the long-term. Managers are usually evaluated on short-term performance criteria and therefore they have a bias for take-overs. Several investigators have studied the decline of the United States economy and the corresponding rise of Japan as industrial leader. The unrestrained take-over activity has been the chief reason for the decline of many industries in the United States. Acquiring companies have contributed to their own downfall by not investing sufficiently in up-to-date manufacturing resources. Take-overs lead to economic decline caused by lower productivity of acquired resources. South African companies are showing a strong preference for growth through take-overs. With the take-over process many local industries have come under the control of a few large conglomerates. South African acquiring companies could benefit by following the Japanese example of direct investments in technologically up-to-date manufacturing resources. More direct investment in manufacturing resources will lead to a more vigorous free-enterprise system and will raise the productivity of local industries. A more stringent Competition Act is necessary if South Africa is to avoid the harm to the economy caused by unrestrained take-over activity.

The Future of Muslim Education in the United States: An Agenda for Research

2003 ◽  
Vol 20 (3-4) ◽  
pp. 46-82
Author(s):  
Fathi Malkawi
Keyword(s):  
United States ◽  
The United States ◽  
American Education ◽  
Future Trends ◽  
Muslim Community ◽  
Short Term ◽  
The Future ◽  
Muslim Education ◽  
Future Plans

This paper addresses some of the Muslim community’s concerns regarding its children’s education and reflects upon how education has shaped the position of other communities in American history. It argues that the future of Muslim education will be influenced directly by the present realities and future trends within American education in general, and, more importantly, by the well-calculated and informed short-term and long-term decisions and future plans taken by the Muslim community. The paper identifies some areas in which a wellestablished knowledge base is critical to making decisions, and calls for serious research to be undertaken to furnish this base.

A Note Concerning the Dynamics of Government Bond Yields

2021 ◽  
pp. 056943452098827
Author(s):  
Tanweer Akram
Keyword(s):  
Interest Rate ◽  
Financial Markets ◽  
Yield Curve ◽  
Empirical Studies ◽  
State Theory ◽  
Government Bond ◽  
Bond Yields ◽  
Short Term ◽  
Government Bonds

Keynes argued that the central bank can influence the long-term interest rate on government bonds and the shape of the yield curve mainly through the short-term interest rate. Several recent empirical studies that examine the dynamics of government bond yields not only substantiate Keynes’s view that the long-term interest rate responds markedly to the short-term interest rate but also have relevance for macroeconomic theory and policy. This article relates Keynes’s discussions of money, the state theory of money, financial markets, investors’ expectations, uncertainty, and liquidity preference to the dynamics of government bond yields for countries with monetary sovereignty. Investors’ psychology, herding behavior in financial markets, and uncertainty about the future reinforce the effects of the short-term interest rate and the central bank’s monetary policy actions on the long-term interest rate. JEL classifications: E12; E40; E43; E50; E58; E60; F30; G10; G12; H62; H63

“The Death of Liberal Internationalism?: Donald Trump, Walmart, and the Two Koreas”

2018 ◽  
Vol 25 (2) ◽  
pp. 169-197
Author(s):  
Mitchell B. Lerner
Keyword(s):  
United States ◽  
The United States ◽  
Business Practices ◽  
Short Term ◽  
New Approach ◽  
Liberal Internationalism ◽  
The People ◽  
Modern Business ◽  
Short Time

The election of Donald J. Trump unsettled many areas of U.S. foreign policy, but few more than the nation’s relationship with Korea. This article argues that the Trump administration’s vision for the world represents a stark break from the tradition of liberal internationalism and instead seeks to take the United States down a path that reflects the modern business practices of giant American corporations. A suitable label for this vision, as the following pages will show, is “Walmart unilateralism.” This framework abandons the traditional American policies of nation building and alliances based on shared ideological values. Instead, it embraces a more short-term approach rooted in financial bottom lines, flexible alliances and rivalries, and the ruthless exploitation of power hierarchies. This new approach, this article concludes, may dramatically transform the American relationship with Korea. Walmart unilateralism in Korea almost certainly will have some short-time positive ramifications for the United States, but its larger failure to consider the history and values of the people living on the Korean Peninsula may generate serious long-term problems for the future experience of the United States in the region.

The Treatment of Germany

2013 ◽  
Author(s):  
Franz Neumann
Keyword(s):  
United States ◽  
United Nations ◽  
The United States ◽  
German Society ◽  
Military Government ◽  
Short Term ◽  
The Third ◽  
The World ◽  
Probationary Period

This chapter considers a variety of methods of treating Germany. The main objective of the United Nations in the treatment of Germany is to prevent it from ever again becoming a threat to the security of the world. The problem of securing this objective could be approached through destruction of Germany's industrial potential, destruction of Germany as a political entity, and removal from German society of the causes of aggression. The chapter shows that the first two solutions should be deferred until it is clear that the third alternative proves unworkable. In order to eliminate the causes of aggressiveness in German society, temporary and long-term disabilities should be imposed upon Germany. The chapter also examines the causes of German aggression, the United States' policy toward Germany, short-term measures during the period of military government, conditional measures during the probationary period, and permanent impositions upon Germany.

Outsider Ko Wen-je could become Taiwan's president

2019 ◽  
Keyword(s):  
United States ◽  
Political Party ◽  
The United States ◽  
Election Campaigns ◽  
Short Term ◽  
Content Type ◽  
Political Landscape

Subject Profile of Ko Wen-je. Significance There are strong indications that Ko Wen-je, the independent mayor of Taipei, will run for election as Taiwan’s president in January 2020. Presidential hopefuls often launch their election campaigns with US trips to shore up relations with Washington, Taiwan’s key security backer; Ko will make a nine-day visit to the United States later this month. He also stated last month that he was considering forming a new political party; the single reason he would need a party of his own would be to make a run for the presidency. Impacts Ko would be a controversial and probably one-term president. Ko could have a game-changing impact in the short term but is unlikely to alter Taiwan's political landscape fundamentally in the long term. Ko would likely take a more moderate stance on China than Tsai does. Ko's outspokenness is what makes him popular, but it also makes him prone to gaffes that could ultimately undermine him.

Beyond Belief?

2019 ◽  
pp. 313-329
Author(s):  
Julie Hollar
Keyword(s):  
United States ◽  
Western Europe ◽  
The United States ◽  
Marriage Equality ◽  
Same Sex ◽  
Short Term ◽  
Same Sex Marriage ◽  
Political Effects ◽  
The World

This chapter analyzes the expansion of same-sex marriage around the world, its causes and its consequences. It argues that the domestic and transnational factors shaping a country’s adoption of same-sex marriage depend crucially on both time and place, encompassing the domestic and the transnational. It further suggests that the effects of same-sex marriage are likewise context-dependent, in most cases producing mixed results for LGBTQ people and movements. Incorporating cases outside of western Europe and the United States, this study urges a broader lens and a new focus on the short-term and long-term political effects of pursuing marriage equality.

Deterrence in 1939

1977 ◽  
Vol 29 (3) ◽  
pp. 404-424 ◽  
Author(s):  
Alan Alexandroff ◽  
Richard Rosecrance
Keyword(s):  
United States ◽  
Soviet Union ◽  
The United States ◽  
Deterrence Theory ◽  
Short Term ◽  
Political Factors ◽  
Time Perspectives ◽  
The Soviet Union ◽  
Time Perceptions

Rather than a case where deterrence was not tried, 1939 is a case where deterrence failed. As such, it has important implications for deterrence theory. Mutual deterrence must operate on roughly the same time perceptions. Britain felt impelled to deter Germany after Prague, but could offer only a long-term deterrent. Germany's short term appeared so favorable that the long-term uncertainties posed by Britain and France failed to restrain her. The experience of 1939 also underlines the importance of political factors, particularly realignment in mutual deterrence. The Russo-German Pact tipped the balance toward war. In the contemporary setting, calculations of time perspectives between the Soviet Union and the United States are important for mutual deterrence, especially in Europe. Changes in the Sino-Soviet split hold further implications for contemporary deterrence.

Over-indebtedness of Russians: Myth or reality?

2018 ◽  
pp. 85-104 ◽  
Author(s):  
O. E. Kuzina ◽  
N. A. Krupenskiy
Keyword(s):  
United States ◽  
Interest Rate ◽  
The United States ◽  
Short Term ◽  
High Interest Rate ◽  
Consumer Loans ◽  
The Family ◽  
The World ◽  
Short Time

The main objective of the study is to assess the level of indebtedness and over-indebtedness of Russians. Despite the fact that according to official statistics, the level of household indebtedness in Russia is one of the lowest in the world, the percentage share of non-performing loans is higher than in the countries with a higher level of household indebtedness. During 2015—2017, every fourth of those who had an outstanding loan in Russia spent more than 30% of his or her income on paying back a loan. The reason is that in Russia, within retail lending consumer loans prevail over mortgages. Consumer loans are taken for a short time and at a high interest rate. As a result, debt service of relatively small loans creates a greater burden on the family budget for Russians than in Europe and the United States. In this context, the increase of retail lending can only be sustainable if banks change their business model and transit from short-term consumer credits to long-term loans secured by real estate or other assets.

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