Heterogeneous Effects of Monetary Policy on Industries: Evidence from Publicly Traded Firms in Peru


  • Carlos Chavez Universidad Nacional Mayor de San Marcos


This paper studies the effects of a monetary policy shock on the industry’s profitability through publicly traded firms in Peru. I use a monetary policy shock that controls the possible endogeneity between the monetary policy with the economic activity and the Central Bank’s anticipation of economic events. I use two profitability measures: ROA and Net Profits. The methodology is Local Projections (LP) because it allows for control of the persistence of monetary policy shocks; in case of biases, it is usually smaller than the traditional methodologies used, such as vector autoregressive (VAR), and because Local Projection is parsimonious. The results I find are heterogeneous and differentiated in terms of quantification and persistence for those dependent variables through industries. These results suggest the existence of a strong credit channel in the transmission mechanism of a monetary policy shock.


Monetary Policy, Heterogeneous Industries, Local Projections

Author Biography

Carlos Chavez, Universidad Nacional Mayor de San Marcos

Investigador Asociado en la Universidad Nacional Mayor de San Marcos (Lima - Perú). Bachiller en Economía por la Universidad Nacional Mayor de San Marcos y actual analista de investigación en el Fondo Monetario Internacional.


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