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Industry growth at the lower bound

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  • Skaperdas, Arsenios

Abstract

I show that if monetary policy is constrained by a lower bound on short-term interest rates, industries typically affected by monetary policy are disproportionately negatively affected. I test for this prediction in US data over 2008-2014 using multiple data sources and measures of monetary policy sensitivity. I find little evidence that growth was negatively affected, suggesting that the Federal Reserve's monetary policy was not very constrained by the lower bound.

Suggested Citation

  • Skaperdas, Arsenios, 2025. "Industry growth at the lower bound," Journal of International Money and Finance, Elsevier, vol. 152(C).
    • Handle: RePEc:eee:jimfin:v:152:y:2025:i:c:s026156062500018x
    DOI: 10.1016/j.jimonfin.2025.103283
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    More about this item

    Keywords

    Industry growth; Unconventional monetary policy; Lower bound;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • E47 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Forecasting and Simulation: Models and Applications
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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