The transmission of monetary policy through bank lending: The floating rate channel

• 成果类型: Article
• 署名作者: Ippolito, Filippo; Ozdagli, Ali K.; Perez-Orive, Ander
• 署名单位: Pompeu Fabra University; Barcelona School of Economics; Centre for Economic Policy Research - UK; Federal Reserve System - USA; Federal Reserve Bank - Boston; Federal Reserve System - USA; Federal Reserve System Board of Governors
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2018.02.001
• 发表日期: 2018
• 页码: 49-71
• 关键词: Monetary policy transmission; Bank debt; Floating interest rates; financial constraints; hedging

摘要

Unlike other debt, most bank loans have floating rates mechanically tied to monetary policy rates. Hence, monetary policy can directly affect the liquidity and balance sheet strength of firms through existing loans. We show that firms-especially financially constrained firms-with more unhedged loans display a stronger sensitivity of their stock price, cash holdings, inventory, and fixed capital investment to monetary policy. This effect disappears when policy rates are at the zero lower bound, revealing a new limitation of unconventional monetary policy. The floating-rate channel is at least as important as the bank lending channel operating through new loans. (C) 2018 Elsevier B.V. All rights reserved.