Researchers analyzed annual data from Spain, France, Germany, and Italy (1999‑2020) and quarterly data from Belgium (2010‑2023) to examine how firms of different sizes and skill levels respond to monetary policy shocks. For firms with more than 20 employees, employment falls when monetary policy is tightened, while output rises. Wages are positive but not statistically significant, and capital investment shows a significant positive effect. The interaction between output and monetary‑policy changes is positive during expansionary periods and negative when policy contracts. Firms with 20 or fewer employees show the opposite pattern: employment increases with output, wages decline, and capital investment rises. In Belgium, high‑skill firms boost both employment and output in response to policy shocks, whereas low‑skill firms see employment declines and weaker output gains. All estimates use robust, firm‑level clustered standard errors. The authors note that their findings are independent of central banks and provide contact information.
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