Journal Article

Has the stock market crash reduced consumer spending?


Abstract: Some forecasters expected that the October 1987 stock market collapse would seriously lower GNP growth by curtailing consumer spending. After declining in October, however, consumer spending has grown moderately. This relatively small effect is consistent with empirical studies showing that the stock market has only a modest impact on consumer spending.

Keywords: Consumption (Economics); Consumer behavior; Stock market;

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Bibliographic Information

Provider: Federal Reserve Bank of Kansas City

Part of Series: Economic Review

Publication Date: 1988

Volume: 73

Issue: Apr

Pages: 3-16