Our own analysis of this issue indicates that these results are sensitive to how the foreign output gap is defined and to how the inflation model is specified, suggesting that any effect may not be especially robust. That said, the difficulties with measuring slack in the U.S. economy are compounded when describing the global economy, making settlement of this issue especially difficult.
Corporate bonds issues are still limited and companies are often inclined to bank loan financing than resorting to the issuance of bonds.