Consumer credit spreads significantly impact consumption and asset dynamics, affecting indebted households' spending … behavior and the income sensitivity of consumption. Analyzing Danish data, we find that elevated credit spreads reduce … credit spreads playing a crucial role. We develop a HANK model, incorporating bank financing for both firms and households …

higher consumption. Moreover, the shock absorption capability increases in an economy with CBDC. This particularly applies to …

shock horizontally - across countries - within the brackets of the union-wide wealth distribution rather than vertically …