Sentences with phrase «negative wealth effect»

However, U.S. consumers continued to increase savings and reduce household debt in the face of negative wealth effects.

I've argued that the combination is important and complementary: monetary policy lowers the cost of borrowing but if households are both deleveraging and, based on the loss of housing wealth, suffering from lower net worth (i.e., a negative wealth effect), they're less likely to take advantage of those lower rates.

The real key here is to determine the implications from a negative wealth effect.

So the defaults, lost jobs, and negative wealth effects are hitting closer to home this time.