key channel is the wealth effect on consumption. Fluctuations in stock prices and housing prices influence the households … wealth and could have important impacts on households consumption. In addition, stock prices may affect corporate sector … investments and property prices may affect building activity. Here, the method of cointegration is used to estimate the wealth …

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