Research seminar - Prof. Marti G. Subrahmanyam, Ph.D. (Leonard N. Stern School of Business)
Title: Did ECB Liquidity Injections Help The Real Economy in Europe? (with S.L. Daetz, D.Y. Tang and S.Q Wang)
Speaker: Prof. Marti G. Subrahmanyam, Ph.D. (Leonard N. Stern School of Business)
Download the paper (pdf)
Abstract: In an effort to boost the Eurozone economy, the European Central Bank (ECB) launched a plethora of monetary interventions. While the series of Longer-Term Refinancing Operations (LTROs) was among the most significant of these, their efficacy, measured by the impact on corporate policies in the Eurozone, is an important but unanswered issue. Analyzing a large panel of individual corporations across countries, we find that non-financial corporations issued more long-term debt and hoarded more cash following the ECB liquidity injections. However, this increase in corporate liquidity was not employed in a productive manner, as corporations did not subsequently increase their investments or employment.
Faculty, graduate students, and researchers at Goethe University as well as interested researchers from the area are cordially invited to attend at no cost. Registration is not required.