Can monetary stimulus boost corporate investment? We answer this question by studying ECB's 2011-2012 Longer-Term Refinancing Operations (LTROs), which provided cheap funding to Eurozone banks. We find that, relative to their non-Eurozone counterparts, Eurozone firms invested more after the...

Can monetary stimulus by central banks boost corporate investment? We answer this question by studying ECB's Longer-Term Refinancing Operations (LTROs), which provided cheap funding to Eurozone commercial banks to support the real sector. We find that, contrary to the intended result, firms...

This paper investigates the relationship between optimal monetary and tariff policy in open economies. In producer-currency pricing (PCP) case, as in Obstfeld and Rogoff (2002), optimal tariff policy rules are separable from optimal monetary policy rules. Except for PCP case, they are not...