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Expected income growth and the Great Recession

Author

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  • Eric French
  • Taylor Kelley
  • An Qi

Abstract

Consumers? expected income growth declined significantly during the Great Recession. It was the most severe drop ever observed in these data, and expectations have not yet fully recovered. Furthermore, this article shows that expected income growth is a strong predictor of actual future income and consumption growth.

Suggested Citation

  • Eric French & Taylor Kelley & An Qi, 2013. "Expected income growth and the Great Recession," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 37(Q I), pages 14-29.
    • Handle: RePEc:fip:fedhep:y:2013:i:qi:p:14-29:n:v.37no.1
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    References listed on IDEAS

    as
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