The Interest Sensitivity of Consumption and Investment: Evidence from Norway evidence from Norway
This document investigates how monetary policy impacts consumption and investment using narrative shocks and granular data in Norway. Findings indicate that both consumption and investment respond to monetary policy, with notable heterogeneities in subcomponents. Consumption primarily reacts through a drop in services and durable goods, while aggregate investment response is driven mainly by tangible investments and specific sectors highly sensitive to interest costs. The study uses local projection frameworks and firm-level microdata to explore heterogeneity across sectors and capital goods.
Publisert
Eier
Norges Bank
Forfattere
Frida Bowe, Leif Brubakk og Ragnar Juelsrud
Språk
Engelsk