Journal Article

Monetary Policy and Intangible Investment

Abstract: Cooper Howes and Alice von Ende-Becker provide a simple framework to explain how the financing structure and depreciation rate of intangible investment cause it to respond differently to changes in interest rates and then analyze what these properties imply for the efficacy of monetary policy. Building on the findings of Döttling and Ratnovski (2021), they show that monetary policymakers may need to adjust their approach to managing the economy as the share of intangible investment continues to grow.

Keywords: Monetary policy; Investments;

JEL Classification: E52; E22;

https://doi.org/10.18651/ER/v107n2HowesvonEndeBecker

Bibliographic Information

Provider: Federal Reserve Bank of Kansas City

Part of Series: Economic Review

Publication Date: 2022-03-24

Volume: 107

Issue: no.2