A survey of the literature on asset price impacts on the real economy shows a much wider range of work on consumption and related wealth effects than on investment. The existence of wealth effects on consumption is little contested, but there remains an issue of whether different effects should...

There is growing interest in economic uncertainty and its long run impact on investment. In previous work the authors established clear evidence of the negative impact of exchange rate uncertainty on investment in the G7, measured using a GARCH approach, and Pooled Mean Group Panel Estimation....