To what extent can monetary policy impact business innovation? We use microdata to provide evidence of non-neutrality of money with this regard. Literature on this topic is scare, so we add to the recent literature. Our paper is the first to look at how monetary policy shocks affects large firms differently to SMEs, and we look at the moderating role of management capability and exposure to international markets. We also explore how do the aggregate demand and credit constrain channels affect firms.
Omer Majeed is a Research Manager at the Reserve Bank of Australia, where he works on microdata. Omer has published papers on innovation, economic growth and trade in reputable journals and has lectured economic growth at the ANU. Omer completed his Ph.D. at the Crawford School of Public Policy at the ANU. During his career, Omer has worked at Commonwealth Treasury, Department of Industry, Science and Resources and Department of Foreign Affairs and Trade.