This paper adds life-cycle features to a New Keynesian model and shows how this places financial wealth at the center …

concerned about its impact on their wealth; yet, while many households know about inflation eroding nominal assets, most are … beliefs about nominal debt and their own real net wealth. These changes in beliefs causally affect actual consumption and … hypothetical debt decisions. Our findings suggest that real wealth mediates the sensitivity of consumption to inflation once …

In a model with housing collateral, the ratio of housing wealth to human wealth shifts the conditional distribution of … that a decrease in the ratio of housing wealth to human wealth predicts higher returns on stocks. Conditional on this ratio …

Both textbook economics and common sense teach us that the value of household wealth should be related to consumer … suggest. An important first step in understanding the consumption-wealth linkage is determining how closely the two variables … relative importance of permanent and transitory innovations in the variation of consumer spending and wealth and find that …

Keynesian (HANK) model. The model yields empirically realistic distributions of household wealth and marginal propensities to …

The wealthy hand-to-mouth are households who hold little or no liquid wealth (cash, checking, and savings accounts …