Stock market volatility in Malaysia impacts private consumption post-crisis.
The article examines how stock market prices and uncertainty affect consumer spending in Malaysia from 1991 to 2009. They found that changes in real stock prices can impact consumption growth in the short term, and stock market volatility can decrease private consumption, especially during times of crisis. The study shows that after the Asian crisis, the drop in private consumption due to declining stock market wealth was significant, amounting to 2.7% of the average post-crisis GDP.