The opinions expressed in Working Papers are those of the authors and do not necessarily express the views of the Banque de France. [...] In what follows, we show the average effect of interest rate policy and BL shocks on French firms’ investment, and the role of the corporate debt structure in monetary policy transmission. [...] As the left-hand graph indicates, after a contractionary CMP shock, the higher the share of market debt of a firm, the less its investment falls. [...] On the other hand, after a contractionary BL shock, the higher the market debt share of a firm, the more its investment falls. [...] SUERF Secretariat c/o OeNB SUERF’s events and publications The views expressed are those of the Otto-Wagner-Platz 3 provide a unique European author(s) and not necessarily those of A-1090 Vienna, Austria network for the analysis and the institution(s) the author(s) is/are Phone: +43-1-40420-7206 discussion of these and related issues.
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