Household net saving positions and unconventional monetary policy transmission: Evidence from Japan

Nuobu Renzhi

Pacific-Basin Finance Journal, 2023, vol. 79, issue C

Abstract: This paper investigates the heterogeneous effect of unconventional monetary policy (UMP) on household consumption across different household net saving positions. Using Japanese household survey data on household balance sheet positions, income, and expenditures, we enhance the role of the cash-flow channel in the UMP transmission. Households in a lower net saving position (with a higher level of debt) exhibit significantly positive expenditure responses to expansionary UMP shocks. In contrast, households in an upper net saving position (with a lower level of debt) respond little. We also find that households in lower net saving positions primarily drive the aggregate effects of UMP on household consumption.

Keywords: Unconventional monetary policy; Household net saving position; Consumption (search for similar items in EconPapers)
JEL-codes: E21 E51 E52 G11 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:79:y:2023:i:c:s0927538x23000987

DOI: 10.1016/j.pacfin.2023.102032

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