As long as jobs are plentiful and wages rising, the effect of weaker house prices will be muted.
At one recent gathering, Mr. Buiter opined on the disastrous effect rising health care costs would have on the labor market.
But other animals are not adapting well to rising temperatures and the effect on delicate ecosystems.
The Fed justified its second round of quantitative easing partly on grounds that the wealth effect of rising stock prices would stimulate consumer spending and, by extension, boost output and reduce unemployment.
Second, the Smithian effect mitigates rising inequality in India, a serious issue: 48 billionaires in India own 10.9 percent of the GDP (in China, another country with significant inequality, 95 billionaires represent only 2.6 percent of GDP).
The effect of the rising oil price on America could be even more disturbing.
But rising temperatures could have the opposite effect at the edges of both landmasses, causing rates of melting to increase.
Anecdotal evidence supports the thesis that he wealth effect caused by a rising market is encouraging consumers to spend during this holiday season.
Schultz made mention of rising commodity costs and the favorable effect of a weak dollar, as Starbucks brings in profits from around the world.
The wealth effect, aided by rising stock, bond, and home prices from the March 2009 lows provide further salve for the wounds of the past.
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"Over the past year, the impact of rising equity markets has outweighed the effect of falling bond yields and led to an overall improvement in the funding position, " the PPF said.
The giant order of those arches rising two stories high creates an effect of prim grandeur that allows the whole, seen alone against the sky behind, to command the common before it.
Scientists say forests in the Western U.S. have been increasingly damaged in recent years by invasive insect species such as the bark beetle -- a sign that rising temperatures are having an adverse effect.
In 2008, for example, the European Central Bank raised interest rates just months before the financial crisis because of rising commodity prices and their likely effect on inflation, even though the European economy was already weakening sharply.
But one of the most pressing issues facing our country is rising healthcare costs, and these costs effect both private and public dollars.
Yes, I realize one may argue that the stock market is not an accurate measure of the economy but the wealth effect is powerful and a rising stock market has definitely improved the general mood of the investing public thereby allowing them to put some of their new found savings to work.
But to do more substantial damage, rising interest rates would have to have a big effect on earnings themselves.
The star actor was NASA Godard Institute for Space Studies director James Hansen who claimed with 99 percent certainty that temperatures were rising due to a human-influenced "greenhouse effect".
In early May the business and public-policy worlds awoke to the gathering trouble over the rising value of the euro and its further enervating effect on Germany and France, in particular.
Mr Zhu, who visited America in April, might also have noticed that a rising stockmarket brings with it a feel-good effect, making suddenly wealthier investors more likely to spend on real things, like consumer goods and homes.
On a national level, rising subprime mortgage foreclosures are sure to have a ripple effect.
In theory, shifting the estimated 215, 000 houses these agencies hold nationwide to the rental market would have the dual effect of lifting sinking home prices and lowering rising rents.
While there is a slight drop in the share of small businesses offering health insurance since 1998, which probably the result of rising costs, company size continues to have a profound effect on the decision to offer insurance.
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Nor is there much worry about a potential nasty side-effect of a booming current-account surplus: rising inflation.
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But women had rising rates in the 1960s and 1970s, which would have an effect on those now over 60.
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While rising rates do hurt the affordability index they may also have an effect that has not been looked at.
As mentioned above, this rising price of food in the future has a knock-on effect on the real price of food now.
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Rising stock prices have the potential to stimulate household spending due to the wealth effect, and that could raise the likelihood of economic recovery.
That began to happen during the first quarter of this year, when a rising trade imbalance proved a modest counterbalance to booming domestic demand, and its effect is intensifying as the trade deficit widens.
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