1、BIS Working Papers No 1148Firm heterogeneity,capital misallocation and optimal monetary policy by Beatriz Gonzlez,Galo Nuo,Dominik Thaler,Silvia Albrizio Monetary and Economic Department November 2023 JEL classification:E12,E22,E43,E52,L11 Keywords:Monetary policy,firm heterogeneity,financial fricti

2、ons,capital misallocation.BIS Working Papers are written by members of the Monetary and Economic Department of the Bank for International Settlements,and from time to time by other economists,and are published by the Bank.The papers are on subjects of topical interest and are technical in character.

3、The views expressed in them are those of their authors and not necessarily the views of the BIS.This publication is available on the BIS website(www.bis.org).Bank for International Settlements 2023.All rights reserved.Brief excerpts may be reproduced or translated provided the source is stated.ISSN

4、1020-0959(print)ISSN 1682-7678(online)Firm Heterogeneity,Capital Misallocation andOptimal Monetary PolicyBeatriz GonzlezBdEGalo NuoBdE,BISDominik ThalerECBSilvia AlbrizioIMFFirst version:October 2020.This version:October 2023AbstractThis paper analyzes the link between monetary policy and capital mi

5、salloca-tion in a New Keynesian model with heterogeneous firms and financial frictions.In the model,firms with a high return to capital increase their investment morestrongly in response to a monetary policy expansion,thus reducing misallocation.This feature creates a new time-inconsistent incentive

6、 for the central bank to en-gineer an unexpected monetary expansion to temporarily reduce misallocation.However,price stability is the optimal timeless response to demand,financial orTFP shocks.Finally,we present firm-level evidence supporting the theoreticalmechanism.Keywords:Monetary policy,firm h