The "wealth effect" - the impact of changes in household wealth on consumer spending - has been instrumental to the economy's gains, with the American consumer powering the U.S. and global economies. Forces such as surging stock and housing values are driving this, but stability will remain critical for continued growth.
In this paper, Mark Zandi and the Moody's Analytics team discuss the impact of the wealth effect on economic expansion and quantify econometric estimates based on data from Visa and Equifax.
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Moody's Analytics has produced research and forecasts that correlate household wealth with economic conditions under alternative scenarios.Complete the form to request more information.