Wealth effect

Enrique Diaz-Alvarez enrique at anise.ee.cornell.edu
Thu May 11 07:55:19 PDT 2000


April retail sales plunge unexpectedly. -0.2% vs. expectations of +0.5%. Apparently, the (partial) bursting of the bubble did what 5 interest rates hikes and the certainty of more to come wouldn't. So far, my view that the US economy is completely dependent on the stock bubble is born out.

Doug, do you have the link to that paper denying the wealth effect? Thanks!

-- Enrique Diaz-Alvarez Office # (607) 255 5034 Electrical Engineering Home # (607) 272 4808 112 Phillips Hall Fax # (607) 255 4565 Cornell University mailto:enrique at ee.cornell.edu Ithaca, NY 14853 http://peta.ee.cornell.edu/~enrique



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