According to a growing number of critics, the process of financial liberalization in the 1980s is to blame for the volatile macroeconomic development in a number of countries, including the United Kingdom and the Nordic countries. The authors examine how financial deregulation affected one...

The effects of using wealth disaggregated as housing and net financial wealth are investigated in an error-correction function model. Data for Sweden 1970-92 are used in the analysis. Unit root tests indicate that consumption, income, and wealth are all integrated of order one and that the...