Boston Fed paper flags need for research into debt dynamics in recovery period
More research is needed on the relationship between debt and consumption at a household level, according to a Federal Reserve Bank of Boston discussion paper, published today.
Wealth Shocks and Macroeconomic Dynamics, by Daniel Cooper and Karen Dynan, examines the existing literature on the impact of changes in wealth on household consumption and the overall macroeconomy.
The authors say understanding wealth effects is "critical" for forecasting consumption and economic growth, and for gauging
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