Trade Credit and the Monetary Transmission Mechanism
Author : Marion Kohler
Publisher :
Page : 40 pages
File Size : 36,44 MB
Release : 2000
Category : Circular velocity of money
ISBN :
Trade Credit and the Monetary Transmission Mechanism
Author : Marion Kohler
Publisher :
Page : 0 pages
File Size : 16,69 MB
Release : 2005
Category :
ISBN :
Book Description
This paper investigates whether firms with direct access to capital markets 'help out' firms who are reliant on credit from banks by extending more trade credit when times are hard. Taking up a theme of Meltzer (1960) it asks, whether there is a 'trade credit channel' that offsets the bank credit channel more familiar to monetary economists. Using a panel of UK firms quoted on the UK stock exchange, we find that there is. This might explain why, to date, evidence on the bank credit channel has been equivocal.
Trade Credit and Monetary Policy Transmission
Author : Simona Mateut
Publisher :
Page : 0 pages
File Size : 14,67 MB
Release : 2005
Category :
ISBN :
Book Description
Recently, an increasing number of papers have investigated the role of trade credit as an external source of finance when analyzing the monetary transmission mechanism. These works support the balance sheet-channel view and at the same time explain the difficulties encountered when looking for evidence in favor of the bank-lending channel. This paper presents a survey of the emerging literature on the role of trade credit in the transmission of monetary policy, trying to link it with the well-established credit-channel literature.
Trade Credit and the Effect of Macro-Financial Shocks
Author : Mr.Yungsan Kim
Publisher : International Monetary Fund
Page : 36 pages
File Size : 16,74 MB
Release : 2003-06-01
Category : Business & Economics
ISBN : 1451855001
Book Description
Many studies examine why firms are financed by their suppliers, but few empirical studies look at the macroeconomic implications of such financial arrangements. Using disaggregated panel data, we examine how firms extend and use trade credit. We find that, controlling for the transactions or asset management motive, both accounts payable and receivable increase with tighter policy, implying that trade credit helps firms absorb the effect of a credit contraction. A comparison of S&P 500 firms with smaller firms, however, provides no evidence that when policy is tightened, large firms play the role of credit suppliers more actively than small firms.
Monetary Economics
Author : Steven Durlauf
Publisher : Springer
Page : 395 pages
File Size : 34,51 MB
Release : 2016-04-30
Category : Performing Arts
ISBN : 0230280854
Book Description
Specially selected from The New Palgrave Dictionary of Economics 2nd edition, each article within this compendium covers the fundamental themes within the discipline and is written by a leading practitioner in the field. A handy reference tool.
Does Trade Credit Substitute Bank Credit? Evidence From Firm-Level Data
Author : Mr.Guido De Blasio
Publisher : International Monetary Fund
Page : 29 pages
File Size : 44,62 MB
Release : 2003-08-01
Category : Business & Economics
ISBN : 1451858124
Book Description
The paper examines micro data on Italian manufacturing firms' inventory behavior to test the Meltzer (1960) hypothesis according to which firms substitute trade credit for bank credit during periods of monetary tightening. It finds that their inventory investment is constrained by the availability of trade credit. As for the magnitude of the substitution effect, however, this study finds that it is not sizable. This is in line with the micro theories of trade credit and the evidence on actual firm practices, according to which credit terms display modest variations over time.
The Role of Credit Market Imperfections in the Monetary Transmission Mechanism
Author : Mark Gertler
Publisher :
Page : 48 pages
File Size : 46,19 MB
Release : 1993
Category : Capital market
ISBN :
Book Description
Monetary Policy Transmission in the Euro Area
Author : Ignazio Angeloni
Publisher : Cambridge University Press
Page : 522 pages
File Size : 28,61 MB
Release : 2003-12-04
Category : Business & Economics
ISBN : 9780521828642
Book Description
A systematic analysis of the impact of European Central Bank monetary policy on Eurozone national economies, first published in 2003.
Monetary Transmission in Europe
Author : Jan Kakes
Publisher : Edward Elgar Publishing
Page : 176 pages
File Size : 15,83 MB
Release : 2000-01-01
Category : Business & Economics
ISBN : 9781781959336
Book Description
This work focuses on different aspects of the monetary transmission process, looking at both large and small economies in the EMU. The results offer useful evaluation tools with regard to monetary policy transmission in a European perspective.
Revisiting the Monetary Transmission Mechanism Through an Industry-Level Differential Approach
Author : Sangyup Choi
Publisher : International Monetary Fund
Page : 61 pages
File Size : 17,87 MB
Release : 2022-01-28
Category : Business & Economics
ISBN :
Book Description
By combining industry-level data on output and prices with monetary policy rates for a panel of 88 countries, this paper analyzes how the effects of monetary policy vary with certain industry characteristics. Next to being interesting in their own right, our results are informative on the importance of various transmission mechanisms (as they are expected to vary systematically with the included characteristics). Rather than relying on standard monetary policy shock identification, we overcome the endogeneity problem by taking a differential approach (interacting our monetary policy measure with industry-level characteristics). Our results suggest that monetary contractions reduce output by more in industries featuring assets that are more difficult to collateralize (as predicted by the balance sheet channel) and in industries more reliant on international trade (as predicted by the exchange rate channel). Consistent with the financial accelerator mechanism, we find that the balance sheet channel becomes stronger during bad times. At the same time, we do not find evidence supporting the traditional interest rate channel of monetary policy; the same goes for the cost channel.
