Research Discussion Paper – RDP 2016-12 The Household Cash Flow Channel of Monetary Policy

Contents

• Introduction
• Stylised Facts
• Data
• The Sensitivity of Household Spending to Cash Flows
• Quantifying the Aggregate Cash Flow Channel
• A Closer Look at the Borrower Cash Flow Channel
• Conclusion
• Appendix A: Full Regression Output
• References
• Copyright and Disclaimer Notices

We would like to thank Adrian Auclert, Matthew Read, Paul Ryan, John Simon, Penelope Smith and Luke Willard for helpful advice, comments and suggestions. We also thank seminar participants at the Australian Treasury, Reserve Bank of Australia and the Longitudinal Data Conference 2016. The views expressed in this paper are those of the authors and do not necessarily reflect the views of the Reserve Bank of Australia. The authors are solely responsible for any errors.