firm level investment and high-frequency identified monetary policy shocks. We show that the reaction of firms' investment …

Is monetary policy less effective at stimulating investment during periods of elevated volatility (when all firms … experience an increase in the variance of their productivity shocks) than during normal times? In this paper, I argue that … elevated volatility leads to a decrease in extensive margin investment incentive so that nominal stimulus generates less …

equilibrium, general-equilibrium effects overturn this result: a monetary expansion increases the investment of high-productivity … their productivity and net worth and face collateral constraints that cause capital misallocation. TFP endogenously depends … firms relatively more than that of low-productivity ones, crowding out the latter and increasing TFP. We provide empirical …

equilibrium, general-equilibrium effects overturn this result: a monetary expansion increases the investment of high-productivity … their productivity and net worth and face collateral constraints that cause capital misallocation. TFP endogenously depends … firms relatively more than that of low-productivity ones, crowding out the latter and increasing TFP. We provide empirical …

heterogeneous firms and financial frictions. In the model, firms with a high return to capital increase their investment more …