Trade credit and the transmission of unconventional monetary policy

Manuel Adelino, Miguel A. Ferreira, Mariassunta Giannetti, Pedro Pires

Research output: Contribution to journalArticlepeer-review

11 Citations (Scopus)


We show that production networks are important for the transmission of unconventional monetary policy. Firms with bonds eligible for purchase under the European Central Bank’s Corporate Sector Purchase Program act as financial intermediaries by extending additional trade credit to their customers. The increase in trade credit is pronounced from core countries to periphery countries and for financially constrained customers. Customers then increase investment and employment in response to the increased trade financing, whereas suppliers expand their customer base, contributing to upstream industry concentration. Our findings suggest that trade credit redistributes the effects of monetary policy across regions and firms.

Original languageEnglish
Pages (from-to)775–813
JournalReview Of Financial Studies
Issue number2
Early online date25 Jun 2022
Publication statusPublished - 1 Feb 2023


  • E50
  • G30


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