Eterna Images/ShutterstockWe often throw caution to the cold, dark wind of December when it comes to spending. The cost-of-living crisis may slip our minds amid the razzle-dazzle of Christmas. We just want a moment to enjoy ourselves, to forget about the winter gloom. It’s natural for us to behave this way. Our brains are wired for it.

The chair of the central bank is dealing with internal divisions while being besieged by President Trump and front-runners jockeying to replace him.

This study examines the effect of systematic household misestimation of home prices on financial decisions, including stockholdings, consumption, and asset allocation.

Can rising asset prices reduce wealth inequality? This paper builds a continuous-time heterogeneous-agent general equilibrium in which entrepreneurs hold risky private capital and traditional savers hold safe assets. Safe-asset expansions—via financial innovation, public debt, or a stable equity bubble—operate through a single pass-through: they lower entrepreneurs’ undiversified risk exposure, compress risk premia, and raise the interest rate.