Manufacturing leverage weakens ECB monetary policy – BoI paper

europe-growth

Higher leverage among eurozone manufacturing firms weakens the effectiveness of the monetary policy, a working paper published by the Bank of Italy finds.

In Corporate leverage and monetary policy effectiveness in the euro area, Simone Auer, Marco Bernardini and Martina Cecioni focus on the eurozone’s manufacturing sector. The authors examine how sensitive industrial production is to shocks caused by the European Central Bank’s policy.

They find that when leverage in the manufacturing sector

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: