Monetary tightening has ‘rapid’ effect on spending – BIS paper

Study finds conventional policy tools have bigger impact on consumption than unconventional ones

Credit cards

The effects of monetary policy feed rapidly through to consumer spending, as measured by credit card purchases, research published by the Bank for International Settlements finds.

Authors Francesco Grigoli and Damiano Sandri say their paper is the first to examine the effects of monetary policy using credit card data. Because it comprises millions of transactions, the data can help overcome issues with survey-based consumption data, such as small sample sizes, they say.

The authors compare the

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