Trade credit and the transmission of unconventional monetary policy

Adelino, Manuel; Ferreira, Miguel A.; Giannetti, Mariassunta; Pires, Pedro

http://hdl.handle.net/10362/143364

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Autores

Adelino, Manuel

Ferreira, Miguel A.

Giannetti, Mariassunta

Pires, Pedro

Resumo(s)

We show that production networks are important for the transmission of unconventional monetary policy. Firms with bonds eligible for purchase under the European Central Bank’s Corporate Sector Purchase Program act as financial intermediaries by extending more trade credit to their customers. The increase in trade credit is more pronounced from core countries to periphery countries and for financially constrained customers. Customers increase investment and employment in response to the increase in trade financing, while suppliers expand their customer base, contributing to upstream industry concentration. Our findings suggest that trade credit redistributes the effects of monetary policy across regions and firms.

Palavras-chave

Monetary policy Trade credit Corporate bonds Investment Employment

URI

http://hdl.handle.net/10362/143364

Citação

Adelino, Manuel, Ferreira, Miguel A., Giannetti, Mariassunta, Pires, Pedro. Trade credit and the transmission of unconventional monetary policy. (April 2022) Nova SBE Working Paper Series No. 650

Editora

Nova School of Business and Economics

Coleções

NSBE - Working Paper Series

Licença CC

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