01738cas a2200265 a 4500 AALejournalIMF004250 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451848359 1018-5941 BD-DhAAL BD-DhAAL De Gregorio, Jose. Financial Markets and Inflation Under Imperfect Information / Jose De Gregorio, Federico Sturzenegger. Washington, D.C. : International Monetary Fund, 1994. 1 online resource (34 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper studies the effect of inflation on the operation of financial markets, and shows how the ability of financial intermediaries to distinguish among heterogenous firms is reduced as inflation rises. This point is illustrated by presenting a simple model where inflation affects firms' productivity. In particular, productivity differentials narrow as inflation increases. This effect creates incentives for risky and less productive firms to behave as high productivity firms. At high rates of inflation this may result in financial intermediaries being unable to differentiate among customers. Mode of access: Internet Argentina imf Sturzenegger, Federico. IMF Working Papers; Working Paper ; No. 1994/063 Full text available on IMF http://elibrary.imf.org/view/journals/001/1994/063/001.1994.issue-063-en.xml IMF e-Library