Monetary Policy, Corporate Finance, and Investment
In response to a change in interest rates, younger firms not paying dividends adjust both their capital expenditure and borrowing significantly more than older firms paying …
james-cloyne
Clodomiro Ferreira
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1 min read
Monetary Policy when Households Have Debt: New Evidence on the Transmission Mechanism
Using household survey data for the U.S. and the U.K., we show that the aggregate response of consumption to interest rate changes is driven by households with a mortgage. Outright …
james-cloyne