I\'m looking for a clean and elegant solution to handle the INotifyPropertyChanged event of nested (child) objects. Example code:
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Interesting solution Thomas.
I found another solution. It's called Propagator design pattern. You can find more on the web (e.g. on CodeProject: Propagator in C# - An Alternative to the Observer Design Pattern).
Basically, it's a pattern for updating objects in a dependency network. It is very useful when state changes need to be pushed through a network of objects. A state change is represented by an object itself which travels through the network of Propagators. By encapsulating the state change as an object, the Propagators become loosely coupled.
A class diagram of the re-usable Propagator classes:

Read more on CodeProject.