Household wealth often consists of assets that are exposed to market volatility such as real estate or shares. Diverging asset prices in different regions of a currency area can result in price bubbles. Henrik Enderlein and Philipp Ständer analysis for the euro area how much asset prices diverged before and after the crisis. Using a synthetic asset price index, they estimate the impact of the development of stocks and property prices on household wealth.
Philipp Ständer is Advisor at the Federals Ministry of Labour and Social Affairs, he formally worked for the Jacques Delors Centre.