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We show that firms' market power dampens the response of their output to monetary policy shocks, using firm-level data for the United States and a large cross-country firm-level dataset for 14 advanced economies. The estimated impact of a firm's markup on its response to a monetary policy shock...
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alternative measures of monetary policy on banks'credit supply, we include several bank-specific and macroeconomic variables in …
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, we show that under a tight monetary regime small bank lending is more sensitive to monetary shocks. This relation … reverses under loose monetary regimes where large bank lending is more responsive to monetary shocks. Our empirical results …
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