Balance sheet channel

In connection with monetary policy, the effect of a central bank policy measure on the value of a company. Rising interest rates generally CETERIS PARIBUS darken the business prospects and therefore also reduce the value of a company. The price of the company’s shares declines, as does the price of its bonds. The value of any collateral is reduced, and with it the possibility of taking out loans. – See accelerator, financial, bear market, cyclical, hedge fund risks, credit risk, value, cyclical.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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