How to Deal with Real Estate Booms: Lessons from Country Experiences
TLDR
In this article, the authors spell out the circumstances under which a more active policy agenda on this front would be justified and offer tentative insights on the pros and cons as well as implementation challenges of various policy tools that can be used to contain the damage to the financial system and the economy from real estate boom-bust episodes.Abstract:
The financial crisis showed, once again, that neglecting real estate booms can have disastrous consequences. In this paper, we spell out the circumstances under which a more active policy agenda on this front would be justified. Then, we offer tentative insights on the pros and cons as well as implementation challenges of various policy tools that can be used to contain the damage to the financial system and the economy from real estate boom-bust episodes.read more
Citations
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Macroprudential policy – a literature review
TL;DR: The recent financial crisis has highlighted the need to go beyond a purely micro approach to financial regulation and supervision and the number of policy speeches, research papers and conferences that discuss a macro perspective on financial regulation has grown considerably.
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Macro-Prudential Policies to Mitigate Financial System Vulnerabilities
TL;DR: In this article, the authors analyze how changes in balance sheets of some 2800 banks in 48 countries over 2000-2010 respond to specific macro-prudential policies, and find that measures aimed at borrowers such as caps on debt to income and loan-to-value ratios, and limits on credit growth and foreign currency lending are effective in reducing leverage, asset and noncore to core liabilities growth during boom times.
Posted Content
How to Deal with Real Estate Booms: Lessons from Country Experiences
TL;DR: In this article, the authors spell out the circumstances under which a more active policy agenda on this front would be justified and offer tentative insights on the pros and cons as well as implementation challenges of various policy tools that can be used to contain the damage to the financial system and the economy from real estate boom-bust episodes.
Posted Content
Macroprudential Policies and Housing Prices-A New Database and Empirical Evidence for Central, Eastern, and Southeastern Europe
TL;DR: In this paper, the authors collected detailed information on these policy measures in a comprehensive database covering 16 countries at a quarterly frequency and used this database to investigate whether the policy measures had an impact on housing price inflation.
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What Do We Know About the Effects of Macroprudential Policy
TL;DR: The literature on the effectiveness of macro-prudential policy tools is still in its infancy and has so far provided only limited guidance for policy decisions as mentioned in this paper, however, increasing efforts have been made to fill this gap.
References
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Joseph E. Stiglitz,Andrew Weiss +1 more
TL;DR: In this paper, a model is developed to provide the first theoretical justification for true credit rationing in a loan market, where the amount of the loan and amount of collateral demanded affect the behavior and distribution of borrowers, and interest rates serve as screening devices for evaluating risk.
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Discretion versus policy rules in practice
TL;DR: In this article, the authors examine how recent econometric policy evaluation research on monetary policy rules can be applied in a practical policymaking environment, and the discussion centers around a hypothetical but representative policy rule much like that advocated in recent research.
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The Efficiency of the Market for Single-Family Homes
TL;DR: In this article, weak-form efficiency of the market for single family homes is evaluated using data on repeat sales prices of 39,210 individual homes, each for two sales dates.
Posted Content
The Efficiency of the Market for Single-Family Homes
Karl E. Case,Robert J. Shiller +1 more
TL;DR: In this paper, the efficiency of single family home prices is evaluated using repeat sales prices of 39,210 individual homes in Atlanta, Chicago, Dallas, and San Francisco/Oakland for 1970-86.
Journal ArticleDOI
Housing Market Spillovers: Evidence from an Estimated DSGE Model
Stefano Neri,Matteo Iacoviello +1 more
TL;DR: In this paper, the authors investigated the ability of a two-sector model to quantify the contribution of the housing market to business fluctuations using U.S. data and Bayesian methods and found that a large fraction of the upward trend in real housing prices over the last 40 years can be accounted for by slow technological progress in the housing sector.