Asymmetric Effects of Interest Rate Changes: The Role of the Consumption-Wealth Channel

MacDonald, Garry; Mullineux, Andrew; Sensarma, Rudra

[journal article]

dc.contributor.author	MacDonald, Garry	de
dc.contributor.author	Mullineux, Andrew	de
dc.contributor.author	Sensarma, Rudra	de
dc.date.accessioned	2011-04-01T04:59:00Z	de
dc.date.accessioned	2012-08-30T04:45:50Z
dc.date.available	2012-08-30T04:45:50Z
dc.date.issued	2009	de
dc.identifier.issn	1466-4283
dc.identifier.uri	http://www.ssoar.info/ssoar/handle/document/24263
dc.description.abstract	Abstract This paper examines the role of the consumption-wealth channel in explaining asymmetric effects of monetary policy changes. Towards this end, we draw upon available literature on the consumption function and behavioural finance to construct a framework for asymmetric effects of monetary policy caused by the impact of wealth changes on aggregate consumption. We then employ data from the UK to examine the validity of the proposed framework. In the context of a liberalized economy with easy access to consumer credit, wealth reduction due to monetary tightening is expected to have weaker impact on spending than increase in wealth. Our results validate the above hypothesis.	en
dc.language	en	de
dc.subject.ddc	Wirtschaft	de
dc.subject.ddc	Economics	en
dc.title	Asymmetric Effects of Interest Rate Changes: The Role of the Consumption-Wealth Channel	en
dc.description.review	begutachtet (peer reviewed)	de
dc.description.review	peer reviewed	en
dc.source.journal	Applied Economics	de
dc.subject.classoz	National Economy	en
dc.subject.classoz	Volkswirtschaftstheorie	de
dc.identifier.urn	urn:nbn:de:0168-ssoar-242639	de
dc.date.modified	2011-04-01T04:59:00Z	de
dc.rights.licence	PEER Licence Agreement (applicable only to documents from PEER project)	de
dc.rights.licence	PEER Licence Agreement (applicable only to documents from PEER project)	en
ssoar.contributor.institution	http://www.peerproject.eu/	de
internal.status	-1	de
dc.type.stock	article	de
dc.type.document	journal article	en
dc.type.document	Zeitschriftenartikel	de
dc.source.pageinfo	1991-2001
internal.identifier.classoz	1090301
internal.identifier.journal	21	de
internal.identifier.document	32
internal.identifier.ddc	330
dc.identifier.doi	https://doi.org/10.1080/00036840902950572	de
dc.description.pubstatus	Postprint	en
dc.description.pubstatus	Postprint	de
internal.identifier.licence	7
internal.identifier.pubstatus	2
internal.identifier.review	1
internal.check.abstractlanguageharmonizer	CERTAIN
internal.check.languageharmonizer	CERTAIN_RETAINED

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Volkswirtschaftstheorie
Economic Theory

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