The extensive margin and monetary policy

• 成果类型: Article
• 署名作者: Bergin, Paul R.; Corsetti, Giancarlo
• 署名单位: University of California System; University of California Davis; European University Institute; Roma Tre University
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2008.08.011
• 发表日期: 2008
• 页码: 1222-1237
• 关键词: productivity; monetary policy; Market dynamics

摘要

The creation of new firms, referred to as the extensive margin, is a significant but overlooked dimension of monetary policy. A monetary VAR documents that monetary policy has significant effects on firm creation. An analytically tractable model combining sticky prices and firm entry shows that entry alters the transmission of monetary policy innovations, acting much like a type of investment in more standard models. Monetary policy rules that offset the uncertainty of productivity shocks can raise the mean level of entry and thereby welfare, suggesting a new motivation for stabilization policy. (C) 2008 Elsevier B.V. All rights reserved.