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Effects of Monetary Policy on Firms in Brazil: An Empirical Analysis of the Balance Sheet Channel

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  • de Oliveira, Fernando Nascimento

Abstract

This paper investigates the transmission mechanism of monetary policy in Brazil. It is an empirical analysis of the effects of monetary policy on the behavior of firms in Brazil. We build an original database composed of financial statements of 291 public firms and of 4,735 private firms. We use the balance sheet theory to investigate how firms respond to monetary contractions. Our results show that small firms are more sensitive to monetary contractions than large firms.

Suggested Citation

  • de Oliveira, Fernando Nascimento, 2009. "Effects of Monetary Policy on Firms in Brazil: An Empirical Analysis of the Balance Sheet Channel," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 29(2), December.
    • Handle: RePEc:sbe:breart:v:29:y:2009:i:2:a:3440
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    Cited by:

    1. Marco Bonomo & Ricardo Brito & Bruno Martins, 2014. "Macroeconomic and Financial Consequences of the After Crisis Government-Driven Credit Expansion in Brazil," Working Papers Series 378, Central Bank of Brazil, Research Department.
    2. Jorge Mario Uribe Gil & Isabel Espinosa Castillo, 2018. "Efectos asimétricos de cambios en la tasa de interés sobre empresas del sector manufacturero colombiano," Revista Finanzas y Politica Economica, Universidad Católica de Colombia, vol. 10(1), pages 173-187, February.
    3. Marco Bonomo & Ricardo Brito & Bruno Martins, 2015. "Macroeconomic and Financial Consequences of the Post-Crisis Government-Driven Credit Expansion in Brazil," IDB Publications (Working Papers) 88337, Inter-American Development Bank.

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