Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/298513 
Year of Publication: 
2023
Series/Report no.: 
Working Paper No. 5/2023
Publisher: 
Norges Bank, Oslo
Abstract: 
We investigate the transmission of monetary policy to investment using Norwegian administrative data. We have two main findings. First, financially constrained firms are more responsive to monetary policy, but the effect is modest; suggesting that firm heterogeneity plays a minor role in monetary transmission. Second, we disentangle the investment channel of monetary policy into direct effects from interest rate changes and indirect general equilibrium effects. We find that the investment channel of monetary policy is due almost exclusively to direct effects. The two results imply that a representative firm framework with investment adjustment frictions in most cases provides a sufficiently detailed description of the investment channel of monetary policy.
Subjects: 
Monetary policy
Investment
JEL: 
E22
E52
D22
G31
Persistent Identifier of the first edition: 
ISBN: 
978-82-8379-281-2
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper
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