Firm-Level Data and Monetary Policy : The Case of a Middle Income Country /

We test the existence of the balance sheet channel of monetary policy in a middle-income country. Firm-level data scarcity and quality, in such a context, make the identification of this channel a steep challenge. To circumvent this challenge, we use panel instrumental variables estimation with meas...

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Bibliographic Details
Main Author: Bounader, Lahcen
Other Authors: Doukali, Mohamed
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2019.
Series:IMF Working Papers; Working Paper ; No. 2019/239
Online Access:Full text available on IMF
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520 3 |a We test the existence of the balance sheet channel of monetary policy in a middle-income country. Firm-level data scarcity and quality, in such a context, make the identification of this channel a steep challenge. To circumvent this challenge, we use panel instrumental variables estimation with measurement error to analyze the financial statements of 58 500 Moroccan firms over the period 2010-2016. Our analysis confirms the existence of this channel. It shows that monetary policy has a significant impact on small and medium enterprises' access to banks' financing, and that firm-specific variables are key determinants of firms' financing decisions. 
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700 1 |a Doukali, Mohamed. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2019/239 
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