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Vermögenspreise und Konsum: Neue Erkenntnisse, amerikanische Erfahrungen und europäische Herausforderungen

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  • Illing, Gerhard
  • Klüh, Ulrich

Abstract

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 article provides a perspective of the challenges for European monetary policy arising from wealth effects on consumption.

Suggested Citation

  • Illing, Gerhard & Klüh, Ulrich, 2005. "Vermögenspreise und Konsum: Neue Erkenntnisse, amerikanische Erfahrungen und europäische Herausforderungen," Munich Reprints in Economics 19509, University of Munich, Department of Economics.
    • Handle: RePEc:lmu:muenar:19509
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