Young Firms and Monetary Policy Transmission.

We investigate the role of business dynamism in the transmission of monetary policy by exploitingthe variation in firm demographics across U.S. states. Using local projections, we find that a larger fraction of young firms significantly mutes the effects of monetary policy on the labor market and pe...

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Detalles Bibliográficos
Formato: Revista
Lenguaje:English
Publicado: Washington, D.C. : International Monetary Fund, 2021.
Colección:IMF Working Papers; Working Paper ; No. 2021/063
Materias:
Acceso en línea:Full text available on IMF
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245 1 0 |a Young Firms and Monetary Policy Transmission. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2021. 
300 |a 1 online resource (64 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a We investigate the role of business dynamism in the transmission of monetary policy by exploitingthe variation in firm demographics across U.S. states. Using local projections, we find that a larger fraction of young firms significantly mutes the effects of monetary policy on the labor market and personal income over the medium term. The firm entry rate and the employment share of young firms are key factors underpinning these results, which are robust to a battery of robustness tests. We develop a heterogeneous-firm model with age-dependent financial frictions that rationalizes the empirical evidence. 
538 |a Mode of access: Internet 
650 7 |a Business Dynamism  |2 imf 
650 7 |a Firm Demographics  |2 imf 
650 7 |a Local Projections  |2 imf 
650 7 |a Monetary Policy  |2 imf 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2021/063 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2021/063/001.2021.issue-063-en.xml  |z IMF e-Library