The Role of Corporate Cash Holdings in the Transmission of Monetary Policy Tightening

Author: Mr. JaeBin Ahn, Euihyun Bae, and Jing Zhou

Volume/Issue: Volume 2024 Issue 245

Publication date: November 2024

ISBN: 9798400296321

$20.00

Add to Cart by clicking price of the language and format you'd like to purchase

Available Languages and Formats


English

Prices in red indicate formats that are not yet available but are forthcoming.

Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Exports and Imports , Labor , Economics- Macroeconomics , Money and Monetary Policy , Public Finance , Corporate cash , Monetary policy transmission , Interest income , Interest expense , Net interest payment , cash holding , tightening JaeBin Ahn , Monetary tightening , Interest payments , Income , Employment , Capital spending , North America , Global

Also of interest

Central Bank Digital Currencies and Financial Stability: Balance Sheet Analys...

Private Participation and its Discontents: Insights from Large-Scale Surveys

Measuring Soft Power: A New Global Index

Public Investment Management Bottlenecks in Low-income Countries

Summary

The U.S. economy has been exceeding expectations amid one of the most aggressive monetary policy tightening cycles. This paper provides firm-level evidence showing that abundant cash holdings enable firms to benefit from higher interest rates, thereby reducing net interest payments and mitigate the adverse impact from interest rate hikes to firms' investment and employment.