A Short Note on Interest Rates and Household Wealth

Riccardo De Bonis and Marco Marinucci

Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, 2023, vol. 9, issue 2, No 8, 617-635

Abstract: Abstract The recent prevalence of low interest rates has raised concerns for the consequences of expansionary monetary policies on household wealth. We analyze the link between interest rates and household wealth by taking into account eight rich countries— Canada, France, Germany, Italy, Japan, Spain, the UK and the USA— from 1980 to 2017. We find a negative association between interest rates and the different forms of household wealth, namely real and financial assets. Our results are robust when we include other control variables that might influence household wealth such as saving propensity, GDP per capita, and the ratio of public debt to GDP.

Keywords: Interest rates; Household wealth and debt (search for similar items in EconPapers)
JEL-codes: E10 E21 G20 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1007/s40797-022-00194-3 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:italej:v:9:y:2023:i:2:d:10.1007_s40797-022-00194-3

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/40797

DOI: 10.1007/s40797-022-00194-3

Access Statistics for this article

Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti is currently edited by Roberto Cellini

More articles in Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti from Springer, Società Italiana degli Economisti (Italian Economic Association) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().