The effect of firm cash holding on monetary policy
Adão, Bernardino
Silva, André C.

Fecha: 2015
Resumen: Firm cash holdings increased substantially from 1980 to 2013. The overall distribution of firm cash holdings changed in the same period. We study the implications of these changes for monetary policy. We use Compustat data and a model with financial frictions that allows the calculation of the monetary policy effects according to the distribution of cash holdings. We find that the interest rate channel of the transmission of monetary policy has become more powerful, as the impact of monetary policy over real interest rates increased. With the observed changes in firm cash holdings, the real interest rate takes 3. 4 months more to return to its initial value after a shock to/nthe nominal interest rate.
Resumen: The ADEMU Working Paper Series is being supported by the European Commission Horizon 2020 European Union funding for Research & Innovation, grant agreement No 649396.
Nota: Número d'acord de subvenció EC/H2020/649396
Derechos: Aquest document està subjecte a una llicència d'ús Creative Commons. Es permet la reproducció total o parcial, la distribució, la comunicació pública de l'obra i la creació d'obres derivades, fins i tot amb finalitats comercials, sempre i quan es reconegui l'autoria de l'obra original. Creative Commons
Lengua: Anglès.
Colección: Barcelona Graduate School of Economics: ADEMU working paper series
Colección: Ademu Working Papers Series ; 11
Documento: workingPaper
Materia: Firm cash holdings ; Interest rates ; Financial frictions ; Market segmentation ; Liquidity effect ; Monetary policy

Adreça alternativa: https://hdl.handle.net/10230/27022
Adreça alternativa: https://hdl.handle.net/2072/305989


40 p, 579.3 KB

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 Registro creado el 2018-10-23, última modificación el 2018-12-17



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