Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/246175 
Year of Publication: 
2021
Series/Report no.: 
ECB Working Paper No. 2598
Publisher: 
European Central Bank (ECB), Frankfurt a. M.
Abstract: 
We study the transmission of (unconventional) monetary policy to the real sector when firm decisions depend on both current and future credit market conditions. For a given level of current credit access, investment and employment increases more at firms expecting bank credit to improve in the future. Three separate unconventional policies by the ECB- the OMT, the introduction of negative rates, and the CSPP-improved expectations of future credit access for SMEs borrowing from banks that were expected to increase SME lending due to the policy. Our results enhance our understanding of the bank balance sheet channel of monetary policy.
Subjects: 
Unconventional monetary policy
funding expectations
corporate investment
JEL: 
D22
D84
E58
G21
H63
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-4821-0
Document Type: 
Working Paper

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