Agenda

31 Gen 2022 12:15

Michele Andreolli - Monetary Policy and the Maturity Structure of Public Debt

Online

Michele Andreolli (London Business School) - Monetary Policy and the Maturity Structure of Public Debt

Abstract:
This paper studies the mediating impact of the maturity of public debt in the transmission of monetary policy shocks to economic activity. A longer debt maturity attenuates greatly the effect of monetary policy: going from the average historical duration of US debt to very short term debt doubles the impact of a rise of the policy rate on output. A similar result holds in UK data. Using data on corporate debt, spreads, investment, and fiscal variables, I show that these effects can be traced back to a quantitatively important financing channel. A model featuring an interaction between an empirically estimated primary market friction and a standard financial accelerator is able to account for these facts.

The seminar can be attended connecting to ZOOM: https://unive.zoom.us/j/88994374280

ID riunione: 889 9437 4280

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L'evento si terrà in inglese

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JMSeminars

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