Consumer Spending and Monetary Policy: the Linkages: Proceedings

actual aggregate consumption assets assumed behavior billion borrowing capital gains changes in money changes in wealth cohort component constant consumer durables consumer spending consumption function corporate correlation current consumption cycle debt decline demand deposits discounted disposable income distributed lag dividends earnings Economic effects on consumption equation equity estimated exogenous exogenous change Figure FMP model gains and losses growth rates household hypothesis impact implied income tax increase indifference curve initial instalment credit interest rates labor income lifetime liquidity constraints loans M₁ marginal propensity Meiselman Modigliani monetarists monetary base monetary change monetary policy monetary restraint money supply multiplier path peak percent period personal consumption expenditures policy simulation policy variable propensity to consume rate of interest ratio reduced form regression response of GNP sales finance companies sector short-term rate statistical stock market stock of money stock prices Table theory Tobin unborrowed reserves wealth effect zero