The Phillips curve is one of the best known, most discussed and most often used macroeconomic relationships. As a result of the severe, prolonged global recession that unfolded in the wake of the 2007–2008 financial crisis, special attention was paid to the issue of the slope of the curve. In...

This paper shows that the pooling of financial resources in an internal capital market may magnify financial distress situations. This effect, which is closely related to the well-known debt overhang phenomenon, arises when there is a illiquidity in one part of the conglomerate, which then...