01735cas a2200277 a 4500 AALejournalIMF021544 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513571584 1018-5941 BD-DhAAL BD-DhAAL Young Firms and Monetary Policy Transmission. Washington, D.C. : International Monetary Fund, 2021. 1 online resource (64 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We investigate the role of business dynamism in the transmission of monetary policy by exploitingthe variation in firm demographics across U.S. states. Using local projections, we find that a larger fraction of young firms significantly mutes the effects of monetary policy on the labor market and personal income over the medium term. The firm entry rate and the employment share of young firms are key factors underpinning these results, which are robust to a battery of robustness tests. We develop a heterogeneous-firm model with age-dependent financial frictions that rationalizes the empirical evidence. Mode of access: Internet Business Dynamism imf Firm Demographics imf Local Projections imf Monetary Policy imf IMF Working Papers; Working Paper ; No. 2021/063 Full text available on IMF http://elibrary.imf.org/view/journals/001/2021/063/001.2021.issue-063-en.xml IMF e-Library