Trade Credit and Monetary Policy Transmission

Journal of Economic Surveys, 2005, vol. 19, issue 4, 655-670

Abstract: Abstract. Recently, an increasing number of papers have investigated the role of trade credit as an external source of finance when analyzing the monetary transmission mechanism. These works support the balance sheet‐channel view and at the same time explain the difficulties encountered when looking for evidence in favor of the bank‐lending channel. This paper presents a survey of the emerging literature on the role of trade credit in the transmission of monetary policy, trying to link it with the well‐established credit‐channel literature.

Date: 2005
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Persistent link: https://EconPapers.repec.org/RePEc:bla:jecsur:v:19:y:2005:i:4:p:655-670

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