On the German Monetary Transmission Mechanism: Interest Rate and Credit Channels for Investment Spending

摘要: The transmission channels through which monetary policy affects business investment remain opaque. This paper examines the importance of interest rate and credit on fixed in Germany. We have at our disposal three uniquely rich datasets -- a panel financial statement data for 6,408 firms (44,345 datapoints) supplemented with user costs capital confidential measures creditworthiness. uncover statistically significant channel. Its economic significance can be sizeable, but depends auxiliary assumptions. Sorting direct measure creditworthiness, we find that constraints are important subset firms. Sortings by firm size or dividend payout ratios shed some light continuing debates literature.