Abstract
We analyse the impact of unconventional monetary policy measures undertaken by central banks in response to COVID-19 crisis on asset prices in money markets. Using novel primary issue-level data of commercial papers (CPs) in India and a staggered difference-in-differences estimation strategy, we examine the effects of On-Tap Targeted Long-Term Repo Operations (On Tap TLTRO) on CP yields of issuers belonging to the targeted sectors. We find that the repo operations lead to a significant reduction of around 30 basis points in the borrowing costs of targeted sectors’ issuers. The findings highlight the effectiveness of interest rate and bank lending channels of transmission of unconventional monetary policy.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
