TRADE CREDIT, BANK LENDING AND MONETARYPOLICY TRANSMISSION

This paper investigates the role of trade credit in the transmissionof monetary policy. Most models of the transmission mechanism allowthe firm to access only financial markets or bank lending according tosome net worth criterion. In our model we introduce trade creditas an additional source of funding. We predict that when monetarypolicy tightens there will be a reduction in market and bank lending,and an increase in trade credit. This is confirmed with an empiricalinvestigation of 16,000 manufacturing firms.

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Year of publication:	2002-10-01
Authors:	Mateut, Simona ; Bougheas, Spiros ; Mizen, Paul
Institutions:	University <Nottingham> / Department of Economics
Subject:	Geldpolitik \| Spieltheorie \| game theory \| Bankkredit \| Bank Lending \| Kreditgeber

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Extent:	313344 bytes 31 p. application/pdf
Series:	The University of Nottingham / School of Economics - discussion papers Discussion Paper ; No. 02/11
Type of publication:	Book / Working Paper
Language:	English
ISSN:	1360-2438
Classification:	E44 - Financial Markets and the Macroeconomy ; E52 - Monetary Policy (Targets, Instruments, and Effects) ; Financial theory ; Capital budgeting, budgetary planning and budgetary control ; Terms and pricing policy ; Individual Working Papers, Preprints ; No country specification
Source:	USB Cologne (business full texts)

Persistent link: https://www.econbiz.de/10005868931