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The working capital channel

Suveg, Melinda - 2023

The New Keynesian model, augmented with the working capital channel, predicts that a rise in the policy rate causes firms that use more working capital to increase their prices more, and that the pass-through is gradual because of price rigidity. Using a unique dataset on firm-product-level...

Persistent link: https://www.econbiz.de/10014440752