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Journal Article

Financial Conditions: Do the Ups and Downs Affect the Rest of the Economy?


Abstract: Do changes in the conditions of financial markets lead to changes in real economic activity? This question can be answered by analyzing the ups and downs in sales and investments of firms with different needs of external financing. The evidence suggests the causal effect is small.

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Bibliographic Information

Provider: Federal Reserve Bank of St. Louis

Part of Series: The Regional Economist

Publication Date: 2017

Volume: 25

Issue: 1

Order Number: 8-12