IDEAS home Printed from
   My bibliography  Save this paper

Monetary Policy and Investment in Germany


  • Nikolaus A. Siegfried

    (Universitaet Hamburg)


This paper investigates monetary policy transmission on a microeconomic level. The credit rationing literature suggests that monetary policy has a larger effects on firms which are credit contrained. I use a large panel of German industrial firms to investigate whether this is empirically true in the German case. Whereas monetary policy has a strong effect on all firms, I find no evidence that tight monetary policy affects constrained firms more than others. This contrasts earlier findings for other countries. My result is robust to a wide array of measures of financial tightness. I conclude that the interest rate channel of monetary policy transmission is very important, whereas the credit channel is negligible in Germany. Given the findings for other countries this result indicates that with regard to a common monetary policy in the Euro area monetary policy may influence investment asymmetrically across member countries.

Suggested Citation

  • Nikolaus A. Siegfried, 2000. "Monetary Policy and Investment in Germany," Econometric Society World Congress 2000 Contributed Papers 0955, Econometric Society.
  • Handle: RePEc:ecm:wc2000:0955

    Download full text from publisher

    File URL:
    File Function: main text
    Download Restriction: no

    Other versions of this item:

    More about this item

    JEL classification:

    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecm:wc2000:0955. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.