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.

You can contact me at matthias.gnewuch [at] gmail [dot] com.

I am on the job market during the 2022-2023 academic year and available for interviews. You can find my job market paper here.


European Economic Review, Vol. 145, June 2022
[Published Version] [Working Paper Version] [Data: Asset Purchase News]

This paper proposes an identification strategy for news about sovereign debt-based asset purchases. It measures sovereign yield changes that are unrelated to movements in risk-free interest rates or risk premiums. Around ECB announcements, these reflect the anticipation of shifts in the effective supply of government debt, caused by central bank purchases. 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 stock prices rise most in low-risk countries with very large firms. In contrast, sovereign yields fall homogeneously.

Working Papers

Market Power and Macroeconomic Fluctuations (Job Market Paper)

[Current Draft]

Crises affect firms unequally. For example, natural disasters disrupt only those firms that are located in a specific region. The current paper studies the aggregate effects of shocks to a subset of firms in many industries – referred to as asymmetric supply shocks. Based on a model with oligopolistic competition and firm heterogeneity, the paper shows that an economy with a lower intensity of competition among firms is less resilient to asymmetric supply shocks. The reason is the behavior of unharmed firms which face a higher demand for their goods. With more market power, these firms find it optimal to respond by raising prices more and expanding production less. Therefore, the volatility of both output and markups is higher when the economy is less competitive. The main mechanism is supported by evidence from firm-level as well as time-series data: Higher markups are associated with a higher volatility.

Monetary Policy, Firm Heterogeneity, and the Distribution of Investment Rates

with Donghai Zhang
[Slides] [Draft coming soon!]

Monetary policy reshapes the distribution of investment rates. Specifically, an interest rate cut leads to fewer small or zero investment rates and more large investment rates. This is called the investment channel of monetary policy along the extensive margin. In addition, this effect is more pronounced among young firms than among old firms. Quantitatively, the extensive margin accounts for around 50% of the effect of monetary policy on the average investment rate and for even more than 50% of the heterogeneous effect on firms of different age groups. To interpret these novel empirical findings, we build a heterogeneous-firm model that combines convex and non-convex adjustment costs, firm life-cycle dynamics, and a New Keynesian sticky-price setup. Fixed adjustment costs make firms typically classified as financially constrained more sensitive to monetary policy without relying on a financial accelerator mechanism.