Monetary policy, firm heterogeneity, and product variety

Masashige Hamano*, Francesco Zanetti

*この研究の対応する著者

研究成果: Article査読

1 被引用数 (Scopus)

抄録

This study provides new insights on the allocative effect of monetary policy. It shows that contractionary monetary policy exerts an important reallocation effect by cleansing unproductive firms and enhancing aggregate productivity. At the same time, however, reallocation involves a reduction in the number of product variety that is central to consumer preferences and hurts welfare. A contractionary policy prevents the entry of new firms and insulates incumbent firms from competition, reducing aggregate productivity. We provide empirical evidence on U.S. data that corroborates the relevance of monetary policy for product variety resulting from firm entry and exit.

本文言語English
論文番号104089
ジャーナルEuropean Economic Review
144
DOI
出版ステータスPublished - 2022 5月

ASJC Scopus subject areas

  • 財務
  • 経済学、計量経済学

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