, the paper analyzes the impact of a monetary policy shock on households' current consumption and durable expenditures … depends on their debt and income levels. In particular, households with higher debt tend to reduce their current consumption …

Debt-financed consumption sprees can be socially costly. Easy access to credit can push economic activity above …, tendencies toward over-borrowing have roots in consumers' predispositions to conform to rising consumption norms. Second …-financed consumption sprees. …