We examine the effects of monetary policy on household self-assessed financial stress and durable consumption using … savers. We find symmetric effects on durable consumption, mainly driven by mortgagors with high debt burden or limited access …

We study the causal effect of mortgage rate changes on consumer spending, debt repayment, and defaults during an … interest rates of short-term fixed-rate mortgages (the dominant product in Canada's mortgage market) have to be reset according … variation in the timing of mortgage rate resets. We find asymmetric responses of consumer durable spending, deleveraging, and …

During the Great Recession, the collapse of consumption across the U.S. varied greatly but systematically with house …-price declines. We find that financial distress among U.S. households amplified the sensitivity of consumption to house-price shocks …-estimated-dynamic model to measure the financial distress channel, we find that these two facts amplify the aggregate drop in consumption by 7 …

This paper quantifies the extent of heterogeneity in consumption responses to changes in real interest rates and house … portfolios, observed in the Household Finance and Consumption Survey (HFCS) for these countries. We then show that the … heterogeneity in household finances implies that responses of consumption to changes in the real interest rate and in house prices …

This paper quantifies the extent of heterogeneity in consumption responses to changes in real interest rates and house …, observed in the Household Finance and Consumption Survey (HFCS) for these countries. We then show that the heterogeneity in … household finances implies that responses of consumption to changes in the real interest rate and in house prices differ …

This paper quantifies the extent of heterogeneity in consumption responses to changes in real interest rates and house …, observed in the Household Finance and Consumption Survey (HFCS) for these countries. We then show that the heterogeneity in … household finances implies that responses of consumption to changes in the real interest rate and in house prices differ …

We study the mortgage cash flow channel of monetary policy transmission under fixed-rate mortgage (FRM) versus … adjustable-rate mortgage (ARM) regimes by comparing the United States with primarily long-term FRMs and Spain with primarily ARMs … that automatically reset annually. We find a robust transmission of mortgage rate changes to spending in both countries but …

to account for anticipation effects on consumption. We investigate this using high-frequency spending and balance sheet … bank sends a letter before the annual reset containing advance information on the expected change in mortgage payments. We … with a standard buffer-stock consumption model, and implies that it is less effective to target stimulus to low liquidity …