Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/301965 
Year of Publication: 
2024
Series/Report no.: 
Economic Memo No. 4
Publisher: 
Danmarks Nationalbank, Copenhagen
Abstract: 
An important monetary transmission channel works through the impact of interest rate changes on non-financial firms' investment decisions. Higher monetary policy rates affect firms' investment decisions by raising the costs of external financing and lowering aggregate demand for goods and services. Using 20 years of firmlevel data from Denmark, we find that an increase in monetary policy rates is associated with a reduction in corporate investment, particularly by smaller firms.
Subjects: 
Investment
Monetary policy transmission
Monetary policy
Denmark
Document Type: 
Research Report

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