Sentences with phrase «wealth effects»

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

Estimating wealth effects without expenditure Data - Or tears: An application to educational enrollments in states of india.

Whatever rabbit Bernanke can still yank from his hat of monetary tricks is illusory — the best QE3 can achieve is the mirage of «wealth effects», the artificial high that is closer to momentary intoxication than to stable contentment.

And the differences underscored above regarding debt versus equity bubbles, the scope of the wealth effects, the ZLB and the austerity pivot, are all important.

-- Relative wealth effects from the housing bubble: Yes, there are a lot of people who own shares of stock but the vast majority of stock market wealth is concentrated at the top of the wealth scale: 80 % of stock market wealth accrues to the top 10 %; over a third to the top 1 %.

For example, a reduction in capital inflows can deflate asset bubbles and so discourage consumption through wealth effects, or such a reduction can lower consumption by raising interest rates on consumer credit, or even by encouraging stronger consumer lending standards.

In addition, the rise in share prices was probably too short - lived for there to have been much in the way of positive wealth effects on spending.

The ongoing debate on the wealth effects of hedge fund activism is worth following and is well - covered on Harvard's corporate governance blog (blogs.law.harvard.edu/corpgov).

The simple model under - predicts consumer spending in the 1990s, probably because of wealth effects spun off by the housing bubble, and over predicts in this recovery, but tracks consumer spending — 70 percent of the US economy — pretty well.

And I am fairly confident that wealth effects associated with a booming stock market were important in the late 1990s.

Dr. Greenspan also gave his latest economic prognosis saying the economy is improving, the wealth effect is positively contributing to the economy and that inflation will become a risk down the line.

«China, the recent growth engine for demand, remains underpenetrated, and should remain accretive, and the North American consumer remains healthy thanks to the wealth effect (equity markets and home prices remain elevated supporting consumer willingness to spend),» she said in an email to CNBC.

In addition, rising home and stock prices are creating a wealth effect that gives consumers a greater ability to pay down their debt, he said.

So they front - loaded consumption and a jump in asset prices - the «wealth effect.»

Slower economic growth has been partially masked by rising asset prices and the wealth effect.

And what we wanted to do was create a wealth effect.

RICHARD FISHER: Not so much that as we were basically trying to create a wealth effect and, hopefully, get things started again.

On the way up, increasing asset prices created a «wealth effect» — those lucky enough to see the value of their home go up so much were more inclined the spend money, thereby stimulating the real economy.

As I note below, the housing bubble and its wealth effect offset this dynamic in the 2000s.

-- Deleveraging and the reverse wealth effect: I've written in lots of places how debt bubbles, like those involving mortgages, take a lot longer to work through then equity bubbles.

«Liquidity,» in fact, is THE watchword now in bond trading — ironic, considering that the U.S. central bank's primary intention has been to boost the flow of cash through financial markets, drive a push toward riskier assets like stocks and corporate credit, and thus generate a wealth effect that would spread through the economy.

And while it's true that household wealth is at a record, the wealth effect is concentrated at the top of the income distribution, where individuals have the lowest propensity to spend.

The wealth effect is in full force, it seems.

Replacement of the real, sustainable wealth which is generated by the manufacturing and export of goods, with the illusory, temporary wealth effect which is enabled by cheap credit and consumption.

Low interest rates helped fuel the real estate and stock market bubble by making the debt side of the balance sheet less expensive, creating a «wealth effect» as people came to believe that rising property and stock - market prices would be able to pay off their obligations.

At the same time, higher asset prices can create a «wealth effect,» which can also boost spending and confidence.

Rising house prices and the accompanying wealth effect, courtesy of ballooning equity lines of credit, have kept the economy from faltering as business spending retrenches and exports disappoint — last year real estate was by far the largest contributor to GDP in seven of 10 provinces, including B.C. and Ontario.

Indeed, former Federal Reserve Chairman Ben Bernanke listed the wealth effect as one argument for his quantitative easing programs.

To be fair, non-stock owners could see a potential upside to the improving stock market through what's known as the «wealth effect.»

In sophisticated economies, the impact of consumption may be less than in emerging economies that are largely import - export driven, but the consumption magnitude is even more pronounced due to both a greater wealth effect and standard of living that enable individuals to spend more freely with disposable income.

The endgame was to force investors into riskier assets, [e.g. junk bonds, equities, real estate], create a wealth effect, and stimulate the economy.

You don't create a wealth effect without creating some artificial wealth that people can spend.

Over time, higher asset values begin to stimulate stronger consumption and investment demand — the so - called «wealth effect.»

The wealth effect was in fact Bernanke's gambit all along.

It should come as no surprise that the «wealth effect» is not feeding the middle class.

Bernanke has talked about creating a wealth effect.

James doesn't think that the wealth effect occurs as a result of that.

They argue it is a greater good because of the wealth effect that comes from that.

Some policymakers argued that there would be little harm to allow financial conditions to ease continuously, as buoyant asset markets would induce wealth effect and sustain a «Goldilocks» economy.

The wealth effect projected by a rising market was emphasized as a driver of consumption.

Bernanke said there would be a wealth effect, and then spending will rise.

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

A major reason for the FOMC's overly optimistic forecast for economic growth and its incorrect view of the effectiveness of quantitative easing is the reliance on the so - called «wealth effect», described as a change in consumer wealth which results in a change in consumer spending.

Wealth effect is not big.

The growth in consumption over the last few years have been driven by the «wealth effect» created by people feeling richer as the value of their property has increased (have a look at my blog post from June 19th last year).

House prices have finally recovered to long term averages, and the wealth effect on U.S. households ought to contribute to further consumer spending.

From no wealth effect realization to meaningful financial market distortions to less Treasury issuance ahead, the Fed knows the costs and the risks (financial bubbles) of further QE are outweighing the less than hoped for positives.

Powell will no longer play the «wealth effect» game that Bernanke embraced.

The speculatively - extended stock market and its positive wealth effect on the pickup in investor class consumer spending has been overhyped: it has briefly extended, but not reaccelerated the stalled out recovery.

By raising the value of stock portfolios, a rising stock market impacts consumers through the well - documented wealth effect.