Is there a zero lower bound? The effects of negative policy rates on banks and firms

• 成果类型: Article
• 署名作者: Altavilla, Carlo; Burlon, Lorenzo; Giannetti, Mariassunta; Holton, Sarah
• 署名单位: European Central Bank; Centre for Economic Policy Research - UK; Stockholm School of Economics; European Corporate Governance Institute; European Central Bank; Central Bank of Ireland
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2021.06.032
• 发表日期: 2022
• 页码: 885-907
• 关键词: Monetary policy; Negative rates; Corporate deposits; cash; INVESTMENT; precautionary behavior

摘要

Exploiting confidential data from the euro area, we show that sound banks pass negative rates on to their corporate depositors and that pass-through is not impaired when policy rates move into negative territory. We do not observe a contraction in deposits, reflecting a general increase in corporate liquidity during the sample period. When their banks charge negative rates on deposits, firms with ex ante high liquidity invest more than comparable firms that are not charged negative rates and increase their liquid holdings less. These results challenge the common view that conventional monetary policy becomes ineffective at the zero lower bound.(c) 2021 The Author(s). Published by Elsevier B.V. This is an open access article under the CC BY license ( http://creativecommons.org/licenses/by/4.0/ )