Media contributions
1Media contributions
Title Technological progress reduces the effectiveness of monetary policy Degree of recognition International Media name/outlet VoxEU Media type Web Date 19/03/21 Description Technological progress increases the importance of corporate intangible assets such as research and development knowledge, organisational structure, and brand equity. Using US data covering 1990 to 2017, this column shows that the stock prices and investment of firms with more intangible assets respond less to monetary policy shocks. Similarly, intangible investment responds less to monetary policy compared to tangible investment. The key channel explaining these effects is a weaker credit channel of monetary policy, as firms with intangible assets use less debt. Producer/Author CEPR URL https://cepr.org/voxeu/columns/technological-progress-reduces-effectiveness-monetary-policy Persons Robin Dottling