We offer micro-econometric evidence on the relationship between the banks' loan rejection rates and the creditworthiness of the banks' corporate customers in 2007 and 2009/10 based on a unique Danish firm- and bank-level dataset. We find lower acceptance rates for applications for bank loans...

Utilising a unique data set with annual accounts from around 37,000 Danish non-financial firms spanning one and a half decade or so, we offer microeconometric evidence on bankfirm relationships and the performance of non-financial firms during the financial crisis 2008-09. Two major conclusions...

We analyze the transmission of monetary shocks in a new openeconomy macroeconomics model with one-period nominal contracts and imperfect information. Shocks may have transitory and persistent components, which only through accumulation of information over time becomes known. Responses to shocks...

In this paper we study the transmission mechanism of productivity shocks in a model with rule-of-thumb consumers. In the literature, this financial friction has been studied only with reference to fiscal shocks. We show that the presence of rule-of-thumb consumers is also very helpful in...

In this paper we show that empirically plausible results on the effects of fiscal shocks in Galí, López-Salido and Vallés (2007) rely on a high degree of price stickiness and a large percentage of financially constrained agents. Real rigidities in the form of habit persistence, fixed...

Empirical evidence documents substantial persistence in the adjustment process to nominal shocks. Existing open-economy models have failed either to generate interesting dynamics or found that the mechanisms are quantitatively weak. We consider the propagation of nominal shocks in a fully...

The impact on central macroeconomic variables from changes in the monetary-policy regime in the OECD countries in the period 1970-2005 is estimated using the difference-in-difference method. We find that both shifts to a fixed-exchange-rate policy and to inflation targeting have led to a decline...