The Investment Channel of Monetary Policy: Disentangling Firm Heterogeneity

The views expressed in this paper are those of the authors and do not necessarily reflect the position of the Federal Reserve Bank of New York, the Federal Reserve System, or the National Bureau of Economic Research. We thank Tincho Almuzara, Adrien Auclert, Mark Bils, Luigi Bocola, Gabriel Chodorow-Reich, Keshav Dogra, Simon Gilchrist, Kilian Huber, Oleg Itskhoki, Silvia Miranda-Agrippino, Matthias Meier, Manuel Menkhoff (discussant), Pablo Ottonello, Ludwig Straub, Gianluca Violante, Thomas Winberry, and Chris Wolf for detailed discussions. Conference and seminar participants at Harvard University, MIT Sloan, the NBER Summer Institute, Ohio State University, the New York Fed, the Richmond Fed, the Philadelphia Fed, De Nederlandsche Bank, University of Western Ontario, University of Manchester, the SED in Copenhagen, the CEPR ESSIM in Lille, the Research Conference in Honor of Raf Wouters, the IMAEF conference in Syros, the annual CEBRA meeting in Copenhagen, the CEPR Conference on New Challenges in Monetary Economics, 7th DMV Econometrics Workshop, and the 4th Workshop on Firm Heterogeneity and Macroeconomics in Bonn provided helpful comments. Augustin Belin, Miles Guerin, and Srinidhi Narayanan provided excellent research assistance.