Financial Coverage and Credit score Card Spending

Francesco Grigoli and Damiano Sandri in this paper analyse the affect of financial coverage on bank card spending:

We analyze the affect of financial coverage on client spending utilizing bank card knowledge. Due to their excessive frequency, these knowledge enhance identification and permit for a exact characterization of the transmission lags. We discover that shocks to short-term rates of interest have an effect on spending way more quickly than shocks to longer-term rates of interest. We additionally detect important asymmetries. Whereas rate of interest rises are contractionary, rate of interest cuts are unable to carry spending. Lastly, by exploiting the disaggregation of bank card knowledge, we uncover appreciable heterogeneity within the results of financial coverage throughout spending classes and a stronger affect on higher-income customers.

This entry was posted on January 3, 2023 at 3:18 pm and is filed underneath Academic research & research papers, Central Banks / Monetary Policy, Economics – macro. You may observe any responses to this entry by the RSS 2.0 feed.
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