Published American Economic Review Online 1 Nov 2025 Published Nov 2025Borrowing and Spending in the Money: Debt Substitution and the Cash-Out Refinance Channel of Monetary PolicyElliot Anenberg · Tess Scharlemann · Eileen van StraelenDoes monetary policy stimulate household borrowing and consumption by enabling cash-out mortgage refinancing ("the cash-out refinance channel"), or does it primarily induce substitution across …