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Higher asset prices have propped up consumer spending and narrower corporate bond spreads have eased firms' borrowing costs.
In turn, the firms borrowing from markets by issuing bonds and equity would face lower financing costs.
Inflation soared to nearly 15%.Before the crisis, Russia's historically high inflation barely affected firms' borrowing costs.
In Italy, where 80 percent of workers are employed by small or medium-size firms, borrowing costs are around 6 percent, compared with 3.5 percent in Germany.
The stable wedge between ECB rates and firms' borrowing costs has been replaced by an unstable gap that varies by country.
When the ECB lowered its rate by half a percentage point in 2003, firms' borrowing rates fell by the same amount.
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firms borrow more than similar public companies.
Commercial-property firms borrowed on a whim in the mid-2000s.
The argument is strongest if weaker firms borrow more than stronger ones.
Banks and multinational firms borrow in dollars, even as they accumulate assets in other denominations.
On March 1, European firms borrowed 530 billion euros in three-year loans from the E.C.B.
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