Monetary policy has an impact on families’ decisions to have children, and easing can boost the birth rate, research by the Bank of England finds.
In the working paper, Fergus Cumming and Lisa Dettling draw on administrative data on mortgage originations and births in the UK to examine how the 4.5-percentage point cut to interest rates after the 2008 crisis affected “household fertility decisions”.
At the onset of the crisis, about half of households of child-bearing age had mortgages and, of
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