Mateut, Simona; Bougheas, Spiros; Mizen, Paul - University <Nottingham> / Department of Economics - 2002
This paper investigates the role of trade credit in the transmissionof monetary policy. Most models of the transmission … 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 …