---
title: Innovation, financial frictions, and persistent effects of monetary policy
url: https://www.ml-quant.com/papers/repec/boe-boeewp-023581/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: RePEc:boe:boeewp:023581
source_url: https://econpapers.repec.org/RePEc:boe:boeewp:023581
featured: 2026-09-25
citations: unknown
topic: Macro-Finance & Rates
---


# Innovation, financial frictions, and persistent effects of monetary policy

Monetary tightening reduces R&D more sharply among firms lacking cash-flow-based borrowing, generating persistent 0.12% output loss that younger, high-patent firms bear disproportionately.

- Source: https://econpapers.repec.org/RePEc:boe:boeewp:023581
- Identifier: RePEc:boe:boeewp:023581
- Released: 2026-09-21
- First featured: Quant Letter No. 132 (2026-09-25): https://www.ml-quant.com/issues/2026-09-25/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Macro-Finance & Rates
- Authors: Aydan Dogan, Ozgen Ozturk

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