Using credit-card data to analyse the impact of monetary policy changes on consumer spending
Statistical agencies publish consumption figures that rely heavily on household surveys that are limited in sample size, reporting errors and time lags. In this review, we summarise a paper that uses alternative sources of consumer transaction data to analyse the impact of interest rate changes on consumer purchasing behaviours. The high-frequency nature of credit-card data can provide a more precise measure of consumer spending, which can be more accurately matched with the timing of monetary policy shocks.