Beatriz González (Banco de España), Galo Nuño
(Banco de España), Dominik Thaler (Directorate General Research,
European Central Bank) and Silvia Albrizio (International Monetary Fund)
use
a New Keynesian model and granular data on Spanish firms to show
that expansionary monetary policy reduces capital misallocation,
potentially allowing some firms to contribute significantly to economic
productivity.
However, in committing to an optimal policy course, central banks are
better off sticking to price stability rather than exploiting this
channel to influence productivity.
The ECB Research Bulletin features a selection of
recent work on policy-relevant topics by ECB economists. Published on a
monthly basis, the articles in the Research Bulletin are intended for a
general audience. The views expressed in each
article are those of the authors and do not necessarily represent the
views of the European Central Bank and the Eurosystem. (...)
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