01991cas a2200265 a 4500 AALejournalIMF019153 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498303767 1018-5941 BD-DhAAL BD-DhAAL Loukoianova, Elena. Household Debt, Consumption, and Monetary Policy in Australia / Elena Loukoianova, Yu Ching Wong, Ioana Hussiada. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (39 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper discusses the evolution of the household debt in Australia and finds that while higher-income and higher-wealth households tend to have higher debt, lower-income households may become more vulnerable to rising debt service over time. Then, the paper analyzes the impact of a monetary policy shock on households' current consumption and durable expenditures depending on the level of household debt. The results corroborate other work that households' response to monetary policy shocks depends on their debt and income levels. In particular, households with higher debt tend to reduce their current consumption and durable expenditures more than other households in response to a contractionary monetary policy shocks. However, households with low debt may not respond to monetary policy shocks, as they hold more interest-earning assets. Mode of access: Internet Hussiada, Ioana. Wong, Yu Ching. IMF Working Papers; Working Paper ; No. 2019/076 Full text available on IMF http://elibrary.imf.org/view/journals/001/2019/076/001.2019.issue-076-en.xml IMF e-Library