Real Effects of Unconventional Monetary Policy 

27 Pages Posted: 11 Dec 2024

See all articles by Piotr Danisewicz

Piotr Danisewicz

Tilburg University - Department of Finance

Tobias Dieler

University of Bristol - Department of Finance and Accounting

Ye Gao

University of Bristol

Klaus Schaeck

University of Bristol

Date Written: April 23, 2023

Abstract

This paper investigates the real effects of unconventional monetary policy on firms' R&D investment and product market competitiveness. We exploit a quasi-natural experiment, in which the ECB via its Corporate Sector Purchase Programme (CSPP), quasi randomly purchases firms' bonds. By focusing on firms whose bonds are eligible to the CSPP, we show that as a result of reduced funding costs, firms whose bonds were purchased invest more into R&D. We provide evidence that runner-ups in product market competition are the main beneficiaries of the reduced funding costs.

Keywords: Monetary policy, central banking, R&D, product market competition

Suggested Citation

Danisewicz, Piotr and Dieler, Tobias and Gao, Ye and Schaeck, Klaus, Real Effects of Unconventional Monetary Policy  (April 23, 2023). Available at SSRN: https://ssrn.com/abstract=5023060 or http://dx.doi.org/10.2139/ssrn.5023060

Piotr Danisewicz

Tilburg University - Department of Finance ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Tobias Dieler

University of Bristol - Department of Finance and Accounting ( email )

Tyndalls Park Road 15-19
Bristol, BS8 1PY
United Kingdom

HOME PAGE: http://sites.google.com/site/tobiasdieler/

Ye Gao (Contact Author)

University of Bristol ( email )

University of Bristol,
Senate House, Tyndall Avenue
Bristol, Avon BS8 ITH
United Kingdom

Klaus Schaeck

University of Bristol ( email )

University of Bristol,
Senate House, Tyndall Avenue
Bristol, Avon BS8 ITH
United Kingdom

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