Details
| Translated title of the contribution | The Conundrum of Low Interest Rates |
|---|---|
| Original language | German |
| Pages (from-to) | 290-293 |
| Number of pages | 4 |
| Journal | Wirtschaftsdienst |
| Volume | 97 |
| Issue number | 4 |
| Publication status | Published - 21 Apr 2017 |
Abstract
The article disputes that low interest rates, a characteristic of the German Economy since the Great Recession, indicate a low marginal productivity of capital. It advocates the use of WACC (weighted average cost of capital) as a proxy of the marginal productivity of capital. Using proprietary data from Bloomberg, the article demonstrates that WACC did not fall to zero in Germany during recent years. On average, the marginal productivity of capital was around ten per cent, and it never fell below six per cent.
ASJC Scopus subject areas
- Business, Management and Accounting(all)
- Business, Management and Accounting (miscellaneous)
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In: Wirtschaftsdienst, Vol. 97, No. 4, 21.04.2017, p. 290-293.
Research output: Contribution to journal › Article › Research › peer review
}
TY - JOUR
T1 - Das Rätsel der Niedrigzinsphase
AU - Homburg, Stefan
AU - Knolle, Julia
PY - 2017/4/21
Y1 - 2017/4/21
N2 - The article disputes that low interest rates, a characteristic of the German Economy since the Great Recession, indicate a low marginal productivity of capital. It advocates the use of WACC (weighted average cost of capital) as a proxy of the marginal productivity of capital. Using proprietary data from Bloomberg, the article demonstrates that WACC did not fall to zero in Germany during recent years. On average, the marginal productivity of capital was around ten per cent, and it never fell below six per cent.
AB - The article disputes that low interest rates, a characteristic of the German Economy since the Great Recession, indicate a low marginal productivity of capital. It advocates the use of WACC (weighted average cost of capital) as a proxy of the marginal productivity of capital. Using proprietary data from Bloomberg, the article demonstrates that WACC did not fall to zero in Germany during recent years. On average, the marginal productivity of capital was around ten per cent, and it never fell below six per cent.
UR - http://www.scopus.com/inward/record.url?scp=85018466256&partnerID=8YFLogxK
U2 - 10.1007/s10273-017-2132-3
DO - 10.1007/s10273-017-2132-3
M3 - Artikel
AN - SCOPUS:85018466256
VL - 97
SP - 290
EP - 293
JO - Wirtschaftsdienst
JF - Wirtschaftsdienst
SN - 0043-6275
IS - 4
ER -