We analyse the effect of shocks to housing wealth and income before and after the Great Recession. We combine datasets … containing information on expenditure, income, wealth and debt in a synthetic panel to understand how household indebtedness … affects the response to income and wealth shocks.We find evidence for both a housing wealth effect and income shocks …

decomposing disposable income into labour, property and transfer income is essential for understanding and forecasting consumption …. Finally, substantial crosscountry heterogeneity in marginal propensities to consume out of income and wealth components calls …

, income and consumption. We use panel regressions and an instrumental variable approach. First, our panel-based MPC estimates …

composition of their income and on the components of their wealth. We first review the existing evidence on how monetary policy … affects income and wealth inequality. We then illustrate quantitatively how various channels of transmission - net interest … rate exposure, intertemporal substitution and indirect income channels - affect individual euro area households. We find …

-expressed as a share of 2021-22 income- were larger than a typical recession, and heterogeneous, e.g., 3% in France and 8% in Italy …