Title: Monetary Transmission in Pakistan: The Balance Sheet Channel
Abstract: Using data of non-financial listed firms over a period of 1999-2010, this paper investigates the effectiveness of balance sheet channel in monetary transmission mechanism in Pakistan. By classifying firms as SME and large, this paper finds a strong evidence for the existence of net worth channel in Pakistan. A tight monetary policy worsens the net worth of both the SME and large firms, with SME getting more hit thereby further affecting their cash flows, short-term borrowing, and revenues.
Publication Year: 2012
Publication Date: 2012-04-02
Language: en
Type: preprint
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Cited By Count: 1
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