SO why is the wealth effect turning out to be such a poor predictor of human behavior?
"A positive wealth effect does lead to stronger economic growth."
The wealth effect can also work in the opposite direction.
The big question mark is the extent to which the so-called wealth effect will come into play.
The wealth effect has become integral to the nation's economic strength.
The wealth effect, of course, can also move in the opposite direction.
Now what about the negative wealth effect from the stock market?
The reason for the result is the presence of wealth effects.
Stocks can have a major impact on the economy through what is known as the wealth effect.
Now the question is whether the wealth effect works the same way in reverse.