When monetary policy tightens, some firms substitute bonds for loans, but bank-dependent firms with no access to the bond market face a credit squeeze. A wider credit access makes the economy less sensitive to rate hikes.
š Read the full paper: publications.bof.fi/items/c773f8...
In both the U.S. and the euro area, the share of market finance in aggregate corporatecredit has grown over time. To study the implications of the corporate debt structure for the transmission of mone...
