This volume integrates financial theory, particularly financial
contracting theory, into macroeconomics. The role of financial
contracts in reducing the conflict between the various factors of
production within the firm is described, particularly their
influence upon the pricing, employment, production, and financing
decisions of firms during various stages of the business cycle. Dr.
Krainer takes an unconventional approach to the subject of
financial institutions and markets: by applying financial theory to
macroeconomic topics, he portrays a different view of how the
financial system interacts with the economy.
General
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