Dear all, we kindly invite you to our next Economic Theory & Policy talk on Mon, May 26, 2025, 4:00 PM - TU Wien, Seminarroom: DA green 04 (Freihaus Building, 4th floor, green area) Joachim Jungherr (University of Bonn) https://joachimjungherr.com/ “Corporate debt maturity matters for monetary policy” We provide novel empirical evidence that firms’ investment is more responsive to monetary policy when a higher fraction of their debt matures. In a heterogeneous firm New Keynesian model with financial frictions and endogenous debt maturity, two channels explain this finding: (1.) Firms with more maturing debt have larger roll-over needs and are therefore more exposed to fluctuations in the real interest rate (roll-over risk). (2.) These firms also have higher default risk and therefore react more strongly to changes in the real burden of outstanding nominal debt (debt overhang). Unconventional monetary policy, which operates through long-term interest rates, has larger effects on debt maturity but smaller effects on output and inflation than conventional monetary policy. Further events and details: https://www.tuwien.at/en/mg/econ/events Best, Julia Hutter Julia Hutter TU Wien Institute of Statistics and Mathematical Methods in Economics Research Group Economics Phone: +43 1 58801 10531 Mail: julia.hutter@tuwien.ac.at<mailto:julia.hutter@tuwien.ac.at> https://econ.tuwien.ac.at/