Esta web utiliza cookies para que podamos ofrecerte la mejor experiencia de usuario posible. La información de las cookies se almacena en tu navegador y realiza funciones tales como reconocerte cuando vuelves a nuestra web o ayudar a nuestro equipo a comprender qué secciones de la web encuentras más interesantes y útiles.
Publications
Monetary policy, implicit interest rate, and relative net trade credit
Carbó, S., J.M. Mansilla and F. Rodríguez
Source: Revista de Economía Aplicada
Abstract
This paper investigates the effects of monetary policy on the implicit interest rate of trade credit as well as the probability of firms becoming net trade borrowers. We compute the implicit interest rate as the difference between the interest payments made to creditors and those received from debtors over the sum of both. Our results show that a tightening of monetary policy leads to: (i) increasing interest rates for trade credit, (ii) firms becoming trade borrowers, (iii) the generation of divergence in the cost of trade credit among firms in the same industrial sector, and (iv) the generation of a complementarity effect in prices between trade and bank financing.
Recommended citation
Carbó, S., J.M. Mansilla and F. Rodríguez (2017): “Monetary policy, implicit interest rate, and relative net trade credit”, Revista de Economía Aplicada, XXV(73), spring, pp. 21-54.