{
  "title": "Monetary Policy and Credit Card Spending",
  "publication": "IMF Working Papers, December 16, 2022",
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  "summary": "We analyze the impact of monetary policy on consumer spending using credit card data. Because of their high frequency, these data improve identification and allow for a precise characterization of the transmission lags.",
  "sections": [
    {
      "heading": "Summary and main findings",
      "content": "- High-frequency credit card data are used to analyze the impact of monetary policy on consumer spending, improving identification and allowing precise characterization of transmission lags.\n- Shocks to short-term interest rates affect spending much more rapidly than shocks to longer-term interest rates.\n- Significant asymmetries are detected:\n  - Interest rate rises are contractionary.\n  - Interest rate cuts are unable to lift spending.\n- Disaggregation of credit card data reveals considerable heterogeneity in the effects of monetary policy across spending categories.\n- Monetary policy has a stronger impact on higher-income users."
    },
    {
      "heading": "Data and identification",
      "content": "- Primary data: credit card spending at high frequency (credit card data).\n- High-frequency nature of the data improves identification and allows precise measurement of transmission lags between monetary policy shocks and consumer spending responses."
    },
    {
      "heading": "Heterogeneity and distributional effects",
      "content": "- Effects vary considerably across spending categories (credit card spending disaggregation).\n- Higher-income users experience a stronger impact from monetary policy changes."
    },
    {
      "heading": "Key technical points and emphases",
      "content": "- Focus on contrasting short-term versus longer-term interest rate shocks and their differing transmission speeds to spending.\n- Emphasis on asymmetric responses to rate changes (rate rises versus rate cuts).\n- Use of disaggregated, high-frequency transaction data to uncover heterogeneity not visible in aggregate series.\n\nIMF Working Paper No. 2022/255\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2022/12/16/monetary-policy-and-credit-card-spending-527011"
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    "Authors: Francesco Grigoli, Damiano Sandri",
    "Published: December 16, 2022",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9798400225475.001",
    "High-frequency credit card data are used to analyze the impact of monetary policy on consumer spending, improving identification and allowing precise characterization of transmission lags.",
    "Shocks to short-term interest rates affect spending much more rapidly than shocks to longer-term interest rates.",
    "Significant asymmetries are detected:",
    "Disaggregation of credit card data reveals considerable heterogeneity in the effects of monetary policy across spending categories.",
    "Monetary policy has a stronger impact on higher-income users.",
    "Primary data: credit card spending at high frequency (credit card data).",
    "High-frequency nature of the data improves identification and allows precise measurement of transmission lags between monetary policy shocks and consumer spending responses.",
    "Effects vary considerably across spending categories (credit card spending disaggregation).",
    "Higher-income users experience a stronger impact from monetary policy changes.",
    "Focus on contrasting short-term versus longer-term interest rate shocks and their differing transmission speeds to spending.",
    "Emphasis on asymmetric responses to rate changes (rate rises versus rate cuts).",
    "Use of disaggregated, high-frequency transaction data to uncover heterogeneity not visible in aggregate series.",
    "**Working Paper**"
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