TY - BOOK ID - 64743195 TI - Has Higher Household Indebtedness Weakened Monetary Policy Transmission? AU - Gelos, Gaston. AU - Grinberg, Federico. AU - Khan, Shujaat. AU - Mancini-Griffoli, Tommaso. AU - Narita, Machiko. AU - Rawat, Umang. PY - 2019 SN - 1484395069 1484393201 1484395026 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Monetary policy KW - Econometric models. KW - Exports and Imports KW - Finance: General KW - Macroeconomics KW - Financial Markets and the Macroeconomy KW - Monetary Policy KW - Consumer Economics: Empirical Analysis KW - Macroeconomics: Consumption KW - Saving KW - Wealth KW - Urban, Rural, and Regional Economics: Household Analysis: General KW - International Lending and Debt Problems KW - Portfolio Choice KW - Investment Decisions KW - Aggregate Factor Income Distribution KW - International economics KW - Finance KW - Consumption KW - Household consumption KW - Debt burden KW - Liquidity KW - Income KW - National accounts KW - External debt KW - Asset and liability management KW - Economics KW - Debts, External KW - United States UR - https://www.unicat.be/uniCat?func=search&query=sysid:64743195 AB - Has monetary policy in advanced economies been less effective since the global financial crisis because of deteriorating household balance sheets? This paper examines the question using household data from the United States. It compares the responsiveness of household consumption to monetary policy shocks in the pre- and post-crisis periods, relating changes in monetary transmission to changes in household indebtedness and liquidity. The results show that the responsiveness of household consumption has diminished since the crisis. However, household balance sheets are not the culprit. Households with higher debt levels and lower shares of liquid assets are the most responsive to monetary policy, and the share of these households in the population grew. Other factors, such as economic uncertainty, appear to have played a bigger role in the decline of households’ responsiveness to monetary policy. ER -