Monetary policy shocks impact firm investment, revealing industry and age sensitivity.
The study looked at how changes in monetary policy affect firms' investment decisions. They found that young firms are more affected by these changes, showing a credit channel effect. Firms in industries producing durable goods also react more strongly, indicating traditional interest rate effects. Additionally, the impact of monetary policy changes lasts longer for durable goods producers compared to young firms, suggesting that demand effects persist longer than credit effects.