In its latest monthly report, the European Central Bank has published an interesting study on the recent evolution of the wealth of European families.The monetary authority’s objective is to relate families’ net wealth component (assets less debt) to their spending decision. It’s a fact that, in theory, net wealth accumulated with job prospects are both key for household consumption. In addition, wealth also has theoretical consequences for the design of monetary policy.
ECB | When consumers are asked which means of payment they prefer, a larger share report to prefer cards rather than cash – despite the fact that they use cash more often. This contradiction may be explained by the fact that nearly two- thirds of the transactions conducted at POS in 2016 were below €15.