We show that expansionary monetary policy is positively (inversely) associated with household portfolio allocation to high-risk (low-risk) assets, in line with “reaching for yield” behaviour. Our main findings are based on analysis of US household level panel data using alternative measures...

This paper explores the importance of the household's financial position for an individual's level of well-being. Initially, the empirical analysis, based on a large nationally representative panel survey, aims to ascertain the impact of the household's monetary financial position on overall...