Bonin, Simone Maria; Cucic, Dominic; Kuchler, Andreas; … - 2024
' investment decisions. Higher monetary policy rates affect firms' investment decisions by raising the costs of external financing … and lowering aggregate demand for goods and services. Using 20 years of firmlevel data from Denmark, we find that an … increase in monetary policy rates is associated with a reduction in corporate investment, particularly by smaller firms. …