Vermögenspreise und Konsum

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.