Template-Type: ReDIF-Paper 1.0
Author-Name: Francesco Grigoli 
Author-X-Name-First: Francesco
Author-X-Name-Last: Grigoli 
Author-Name: Damiano Sandri 
Author-X-Name-First: Damiano
Author-X-Name-Last: Sandri 
Title: Monetary policy and credit card spending
Abstract: We analyze the impact of monetary policy on consumer spending using confidential credit card data. Being available at daily frequency, these data improve the identification of the monetary transmission and allow for a more precise characterization of the transmission lags. We find that shocks to short-term interest rates affect spending much more rapidly than shocks to medium-term interest rates. We also document significant asymmetries in the effects of monetary policy. While interest rate hikes strongly curb spending-especially if coupled with reductions in stock prices reflecting pure monetary policy shocks-interest rate cuts appear unable to lift spending. Finally, we exploit the disaggregation of credit card data to examine the heterogeneous effects of monetary policy across spending categories and users' characteristics.
Creation-Date: 2023-01
File-URL: https://www.bis.org/publ/work1064.pdf
File-Format: Application/pdf
File-Function: Full PDF document
File-URL: https://www.bis.org/publ/work1064.htm
File-Format: text/html
Number: 1064
Keywords: credit card spending, heterogeneity, monetary policy, transmission 
Classification-JEL: E21, E52
Handle: RePEc:bis:biswps:1064