They have also assumed that rising asset prices will drive powerful "wealth effects, " encouraging households to boost their consumption.
The direct wealth effects of the crisis are the least of it.
If both these wealth effects turn negative, the blow to consumption could be severe, and the current recession could be deeper than most economists now forecast.
As Mr Bernanke remarked in a speech a few months ago, this suggests that changes in property prices should affect consumer spending by more than conventional wealth effects imply.
Some of the studies that found bigger wealth effects reflected periods when households were getting richer because of, say, rising property values, and not, as in the past decade, the stockmarket.
So things like tax deduction, things like fringe benefits that you get through your employer, the structure of government benefits, like Social Security, structurally, women of color are least likely to benefit from all of those types of wealth-building effects because of the types of jobs they have.
Vast wealth is destroyed for the bond holders and the rippling effects of this wealth destruction would most likely spill into currency and equity global markets in various degrees in the short term.
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What many parents of LSC offspring ignore is that with proper planning you can neutralize the dis-incentivizing effects of inherited wealth and run a business.
Few would contend that the demise of the newspaper industry cancels out the wealth-creating and job-producing effects of the Internet.
Sadly, politicians find it easy to embrace the short-term positives of stimulus projects and ignore the deleterious secondary and tertiary effects of their implementation on wealth and capital formation.
That reduces the drag of fees since amounts invested in later years have fewer years to compound the effects, but he still got terminal wealth values 18% to 26% higher.
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But during the 1970s, the interest and concern shifted to the incentive effects that did or did not produce more wealth.
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Wealth management is based on the idea that small changes can have great effects over time.
The team said the effects were "large" and independent of age, sex and wealth.
San Francisco has felt the effects of the Internet boom sooner and more intensely than almost anywhere else, but the wealth that the new economy has created is steadily fanning out and may generate the same tensions elsewhere.
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