The Central Bank of Luxembourg reviewed the growing importance of household microdata for central bank analysis at its 11th Household Finance and Consumption Workshop, held on Sept. 16 and 17. Governor Gaston Reinesch said aggregate statistics can obscure differences in households’ income, wealth, debt and credit constraints, limiting policymakers’ understanding of consumption, savings and monetary policy transmission. Using artificial intelligence as a case study, Reinesch explained that the distribution of productivity gains can prompt households to respond differently by increasing consumption, saving more or facing tighter liquidity constraints. These responses can affect aggregate demand and inflation, while changes in workplace tasks may require workers to adapt at different rates. The workshop brought together nearly 50 participants from central banks, universities and public institutions, and included a keynote on European evidence about AI and labor markets by Christina Gathmann, professor of economics at the University of Luxembourg and head of the Labour Market Department at the Luxembourg Institute of Socio-Economic Research. The Central Bank of Luxembourg plans to hold the next workshop in 2027.
Source: 2026-09-28Central Bank of Luxembourg
Central Bank of Luxembourg highlights household microdata’s role in monetary policy analysis
The Central Bank of Luxembourg highlighted the value of household microdata for assessing consumption, savings and monetary policy transmission at its 11th Household Finance and Consumption Workshop. Governor Gaston Reinesch used artificial intelligence to show how uneven productivity gains and labor market adjustments can produce different household responses that affect demand and inflation. The next workshop is planned for 2027.