![](https://assets.weforum.org/article/image/R2BUVIdzdASiBqm8dE-q1kejgJopdN8Ng91kwHwhDzk.jpg)
Financial and Monetary Systems
This is why rising share prices encourage consumer spending
County-level data on U.S. stock market holdings suggest that rising share prices induce consumer spending, which raises employment and wages. This is known as the wealth effect.