Charles T. Carlstrom, Timothy S. Fuerst, Vasso Ioannidou
Abstract
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When stock market values fall, we know that investors expect lower economic growth in the future. But can stock market declines actually affect future growth? There is some evidence that they can-through the credit channel.
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When stock market values fall, we know that investors expect lower economic growth in the future. But can stock market declines actually affect future growth? There is some evidence that they can-through the credit channel.
Key concepts: Stock (firearms), Stock market, Monetary economics, Economics, Stock market bubble, Growth stock, Business, Financial system