Monetary Policy and the Financing of Firms

• 成果类型: Article
• 署名作者: De Fiore, Fiorella; Teles, Pedro; Tristani, Oreste
• 署名单位: European Central Bank; Banco de Portugal
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MACROECONOMICS
• ISSN/ISSBN: 1945-7707
• DOI: 10.1257/mac.3.4.112
• 发表日期: 2011
• 页码: 112-142
• 关键词: asset prices; AGENCY COSTS

摘要

How should monetary policy respond to changes in financial conditions? We consider a simple model where firms are subject to shocks which may force them to default on their debt. Firms' assets and liabilities are nominal and predetermined. Monetary policy can therefore affect the real value of funds used to finance production. In this model, allowing for inflation volatility in response to aggregate shocks can be optimal; the optimal response to adverse financial shocks is to lower interest rates and to engineer some inflation; and the Taylor rule may implement allocations that have opposite cyclical properties to the optimal ones. (JEL G32, E31, E43, E44, E52)