This paper investigates the effects of monetary policy on the implicit interest rate of trade credit as well as the probability the firm becomes net trade borrower. We also construct the implicit interest rate as the difference between creditors and debtors over the sum of both. Our results show...

This paper investigates the credit channel in Germany and the United Kingdom. The financial systems of these two countries show substantial structural differences, which leads one to expect that their real sectors respond differently to changes in monetary policy. To the extent that this is the...