This paper considers how monetary policy produces heterogeneous effects on euro area households, depending on the … rate exposure, intertemporal substitution and indirect income channels - affect individual euro area households. We find … that the indirect income channel has an overwhelming importance, especially for households holding few or no liquid assets …

We examine the cash-flow channel of monetary policy, i.e. the effect of monetary policy on spending when households … households, we estimate substantial heterogeneity in consumption responses to a change in monetary policy through the cash …-flow channel. Our findings imply that monetary policy has a stronger effect on real economic activity when households are highly …

In the United States, 30% of households are coholders who simultaneously borrow on credit cards and hold liquid assets … liquid debt are important in determining how households consume, save, and repay debt in response to positive income shocks … if targeted at households with low gross positions instead of low net liquid wealth, while debt relief is less effective …

reproduces the distribution of asset levels and portfolios across households observed in the data, which is crucial to …