Matthias Gnewuch

I am a Ph.D. Student in Economics at the Bonn Graduate School of Economics. My supervisors are Keith Kuester, Donghai Zhang and Christian Bayer.

My research interests are Macroeconomics, Monetary Policy & Firm Heterogeneity.

You can find my Curriculum Vitae here.

Please contact me at matthias.gnewuch [at]

Working Paper

R&R at the European Economic Review

Abstract: This paper proposes an identification strategy for news about sovereign debt-based asset purchases. The idea is to measure sovereign yield changes unrelated to movements in risk-free interest rates or risk premiums. Around ECB announcements, these reflect changes in bond scarcity. This paper documents that asset purchase news about government bonds have substantial spillovers to corporate bond and stock markets, within and beyond the euro area. Spillovers are unequal across euro-area countries, as corporate yields fall, and stock prices rise most in countries with initially low sovereign yields. In contrast, sovereign yields fall most where they are initially high.

Work in Progress

On the Heterogeneous Interest Rate Sensitivity of Firms' Investments (with Donghai Zhang)

draft available soon

Abstract: Investment rates of young or small firms are more sensitive to monetary policy shocks. Conventional perspective views these findings as supporting the financial accelerator mechanism, based on the narrative that these firms are financially constrained and monetary policy affects financial conditions. In this paper, we argue that firms typically classified as financially constrained are more sensitive to monetary policy even in the absence of financial frictions. We formulate and quantify our key mechanisms in a New Keynesian heterogeneous firm model with realistic firm life-cycle profiles and non-convex capital adjustment costs. We provide supporting empirical evidence using firm-level investment data.