Working Paper

A Not-So-Great Recovery in Consumption : What is Holding Back Household Spending?


Abstract: Historically, aggregate consumption has closely tracked disposable personal income, government transfers, and household net wealth. In this note, we show that this empirical relationship has broken down in recent years and explore potential explanations for why consumers--at least in the aggregate--may not be spending in line with recent income and wealth gains.

https://doi.org/10.17016/2380-7172.2159

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Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: FEDS Notes

Publication Date: 2018-03-08

Number: 2018-03-08