Interest Rates and Asset Values: A Case Study in Closed Markets (Routledge Focus on Economics and Finance)

In the complex world of corporate strategy and market dynamics, very few questions are as fundamental as understanding what drives the value of business assets.This book presents the first comprehensive empirical analysis of the causal relationship between interest rates and asset values in closed markets, using the unique example of the UK retail pharmacy sector, a market closed by regulation for over three decades. It uncovers a near-perfect inverse relationship between interest rates and asset values, that has persisted across multiple economic cycles, pandemics, changes of government and fundamental changes in both healthcare policy and monetary policy and offers robust proof of an economic principle long theorized but never previously demonstrated so clearly in practice.The book bridges macroeconomic theory, Keynes, Monetarism, Fisher Effect, business strategy, and applied policy, and offers insights relevant to economists, policymakers, business professionals, and anyone interest