Search Results

SORT BY: PREVIOUS / NEXT
Keywords:Consumption Risk 

Working Paper
Household Excess Savings and the Transmission of Monetary Policy

Household savings rose above trend in many developed countries after the onset of COVID-19. Given its link to aggregate consumption, the presence of these "excess savings" has raised questions about their implications for the transmission of monetary policy. Using a panel of euro-area economies and high-frequency monetary policy shocks, we document that household excess savings dampen the effects of monetary policy on economic activity and inflation, especially during the pandemic period. To rationalize our empirical findings, we build a New Keynesian model in which households use savings to ...
International Finance Discussion Papers , Paper 1397

FILTER BY Content Type

FILTER BY Jel Classification

E12 1 items

E21 1 items

E24 1 items

E31 1 items

E52 1 items

FILTER BY Keywords

PREVIOUS / NEXT