Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/104153 
Year of Publication: 
2004
Series/Report no.: 
Munich Discussion Paper No. 2004-5
Publisher: 
Ludwig-Maximilians-Universität München, Volkswirtschaftliche Fakultät, München
Abstract (Translated): 
The article illustrates how the integration of modern theory of finance and stochastic dynamic macroeconomic analysis provides a deeper understanding of the link between asset prices and consumption. It shows that this approach gives only a partial explanation for recent trends in US consumption. Comparing wealth effects in Anglo Saxon countries with continental Europe, the paper provides a perspective of the challenges for European monetary policy arising from wealth effects on consumption.
Subjects: 
Wealth Effect
Consumption
Monetary Policy
Vermögenseffekt
Konsum
Geldpolitik
JEL: 
E21
E44
E58
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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