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We study interest rates transmission to savings at low and negative rates. Exploiting cohorts of consumers from a data-rich multi-country survey, we show how the strength of interest rate transmission to savings varies with the level of nominal interest rates. This response is positive when...
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This paper analyses the results from a new monthly survey of consumers’ euro area inflation expectations before and … during the pandemic. We find that consumers’ longterm euro area inflation expectations have remained elevated above the ECB …’s inflation aim throughout the pandemic. Moreover, their distributions have continuously shown a greater probability of high …
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We study how consumers assess the effects of monetary policy shocks in euro area countries using survey data. Our findings provide evidence that consumers form their expectations in a way that is consistent with empirical and theoretical models of the monetary transmission mechanism, both at the...
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We study the cyclical dynamics of consumption in the euro area (EA) and the large EA countries by distinguishing durable from nondurable expenditures. We adopt a theoretical partial equilibrium framework to justify the identification strategy of our empirical model, a time-varying parameter...
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