INFLATION IN THE CAPITAL MARKET - A MONEY MACHINE?

Year 1995, , 93 - 99, 05.06.1995

Joachim Behrendt

https://doi.org/10.14783/maruoneri.708624

Cited By: 1

Abstract

A Corporation which wants to calculate
the net present value of an investion needs a
discount rate. Typically, it takes the long-term
capital market interest rate for this purpose. For
financing the corporations investions, it has to
decide which credit instruments cause which
capital costs. This means it has to get
informations about capital market interest rates
as well. To manage the daily cash flows with a
cash management system and to optimize cash
balance, it needs capital market interest rates to
know about his opportunity costs of cash
balance a third time.

Keywords

Inflation, Capital Market

References

• Joachim Behrendt, "Inflation in the Capital Market- A Money Machine?", Öneri Dergisi, c.1, s.3, 1995.