This paper investigates how the transmission of monetary policy to the real economy depends on the distribution of household debt. Using an original loan-level dataset covering the universe of UK mortgages, we assess the effect of monetary shocks on aggregate consumption by exploiting time...

This paper examines whether monetary policy reaction function matters for financial stability. We measure how responsive the Federal Reserve's policy appears to be to imbalances in the equity, housing and credit markets. We find that changes in these policy sensitivities predict the later...

Empirical evidence on inflation targeting (IT) outcomes has been mixed so far, mainly because most of the assessments have been based on a control group methodology in a period where differences between IT and non-IT countries were insignificant. In this paper, we study IT impact over time and...