Trade Credit and the Credit Channel of Monetary Policy Transmission
Author : Jeffrey H. Nilsen
Publisher :
Page : pages
File Size : 20,67 MB
Release : 1993
Category :
ISBN :
Author : Jeffrey H. Nilsen
Publisher :
Page : pages
File Size : 20,67 MB
Release : 1993
Category :
ISBN :
Author : Simona Mateut
Publisher :
Page : 0 pages
File Size : 46,16 MB
Release : 2005
Category :
ISBN :
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.
Author : Pınar Özlü
Publisher :
Page : pages
File Size : 32,17 MB
Release : 2010
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ISBN :
This study investigates the trade credit channel of monetary policy transmission in Turkey by using a large data set of corporate firms, which includes detailed information on balance sheets and income statements of firms regularly reported to the Central Bank of the Republic of Turkey (CBRT) in the period of 1996-2008. It suggests that the composition of external finance differs considerably across firm types based on size and export performance under tight and loose financial conditions. For both manufacturing and non-manufacturing firms, small and medium-sized firms (SMEs) and firms with low export share are financially constrained especially in tight periods. Findings suggest that those firms, which are financially constrained, tend to substitute trade credits for bank loans in tight periods. On the other hand, the evidence for large and export-oriented firms differs significantly across manufacturing and non-manufacturing sectors such that manufacturing firms are more likely to have access to bank finance in tight periods compared to non-manufacturing firms. Large trade credits volume in firms balance sheets and its response to monetary stance imply that trade credit channel may mute the traditional credit channel of monetary transmission.
Author : Simona Mateut ̧
Publisher :
Page : pages
File Size : 37,7 MB
Release : 2003
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Author : Ignazio Angeloni
Publisher : Cambridge University Press
Page : 522 pages
File Size : 49,12 MB
Release : 2003-12-04
Category : Business & Economics
ISBN : 9780521828642
A systematic analysis of the impact of European Central Bank monetary policy on Eurozone national economies, first published in 2003.
Author : Marion Kohler
Publisher :
Page : 40 pages
File Size : 21,83 MB
Release : 2000
Category : Circular velocity of money
ISBN :
Author : Mr.Yungsan Kim
Publisher : International Monetary Fund
Page : 36 pages
File Size : 48,27 MB
Release : 2003-06-01
Category : Business & Economics
ISBN : 1451855001
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.
Author : Mr.Luis Brandao-Marques
Publisher : International Monetary Fund
Page : 54 pages
File Size : 42,54 MB
Release : 2020-02-21
Category : Business & Economics
ISBN : 1513529730
Central banks in emerging and developing economies (EMDEs) have been modernizing their monetary policy frameworks, often moving toward inflation targeting (IT). However, questions regarding the strength of monetary policy transmission from interest rates to inflation and output have often stalled progress. We conduct a novel empirical analysis using Jordà’s (2005) approach for 40 EMDEs to shed a light on monetary transmission in these countries. We find that interest rate hikes reduce output growth and inflation, once we explicitly account for the behavior of the exchange rate. Having a modern monetary policy framework—adopting IT and independent and transparent central banks—matters more for monetary transmission than financial development.
Author : Manuel Adelino
Publisher :
Page : pages
File Size : 45,68 MB
Release : 2020
Category :
ISBN :
Author : Mr.Giovanni Dell'Ariccia
Publisher : International Monetary Fund
Page : 41 pages
File Size : 34,5 MB
Release : 2013-06-06
Category : Business & Economics
ISBN : 1484381130
We present evidence of a risk-taking channel of monetary policy for the U.S. banking system. We use confidential data on the internal ratings of U.S. banks on loans to businesses over the period 1997 to 2011 from the Federal Reserve’s survey of terms of business lending. We find that ex-ante risk taking by banks (as measured by the risk rating of the bank’s loan portfolio) is negatively associated with increases in short-term policy interest rates. This relationship is less pronounced for banks with relatively low capital or during periods when banks’ capital erodes, such as episodes of financial and economic distress. These results contribute to the ongoing debate on the role of monetary policy in financial stability and suggest that monetary policy has a bearing on the riskiness of banks and financial stability more generally.