Liquidity constraints impact consumption behavior, changing economic growth dynamics.
The article examines how people's spending habits are influenced by their access to money. It suggests that when some individuals have trouble getting cash, their spending changes based on their income and interest rates. The study shows that these constraints on cash flow are significant, and people tend to adjust their spending more than previously thought. Additionally, the research indicates that economic changes, like the 1982 recession, can impact how people manage their money over time.