The Transmission of Monetary Policy under the Microscope

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State: Public
Version: Author's accepted manuscript
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Serval ID
serval:BIB_B5554AB4C5B4
Type
Article: article from journal or magazin.
Collection
Publications
Institution
Title
The Transmission of Monetary Policy under the Microscope
Journal
Journal of Political Economy
Author(s)
Holm Martin Blomhoff, Paul Pascal, Tischbirek Andreas
ISSN
0022-3808
1537-534X
Publication state
Published
Issued date
01/10/2021
Peer-reviewed
Oui
Volume
129
Number
10
Pages
2861-2904
Language
english
Abstract
We investigate the transmission of monetary policy to household consumption using administrative data on the universe of households in Norway. Based on identified monetary policy shocks, we estimate the dynamic responses of consumption, income, and saving along the liquid asset distribution of households. For low-liquidity but also for high-liquidity households, changes in disposable income are associated with a sizable consumption reaction. The impact consumption response is closely linked to interest rate exposure, which is negative at the bottom but positive at the top of the distribution. Indirect effects of monetary policy gradually build up and eventually outweigh the direct effects.
Keywords
Economics and Econometrics
Web of science
Create date
22/02/2021 13:34
Last modification date
26/09/2021 6:40
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