The Housing Supply Channel Of Monetary Policy
DOWNLOAD
Download The Housing Supply Channel Of Monetary Policy PDF/ePub or read online books in Mobi eBooks. Click Download or Read Online button to get The Housing Supply Channel Of Monetary Policy book now. This website allows unlimited access to, at the time of writing, more than 1.5 million titles, including hundreds of thousands of titles in various foreign languages. If the content not found or just blank you must refresh this page
The Housing Supply Channel Of Monetary Policy
DOWNLOAD
Author : Bruno Albuquerque
language : en
Publisher: International Monetary Fund
Release Date : 2024-02-02
The Housing Supply Channel Of Monetary Policy written by Bruno Albuquerque and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2024-02-02 with Business & Economics categories.
We study the role of regional housing markets in the transmission of US monetary policy. Using a FAVAR model over 1999q1–2019q4, we find sizeable heterogeneity in the responses of US states to a contractionary monetary policy shock. Part of this regional variation is due to differences in housing supply elasticities, household debt overhang, and housing wealth (volatility). Our analysis indicates that house prices and consumption respond more in supply-inelastic states and in states with large household debt imbalances, where negative housing wealth effects bite more strongly and borrowing constraints become more binding. Moreover, financial stability risks increase sharply in these areas as mortgage delinquencies and foreclosures surge, worsening banks’ balance sheets. Finally, monetary policy may have a stronger effect on housing tenure decisions in supply-inelastic states, where the homeownership rate and price-to-rent ratios decline by more. Our findings stress the importance of regional housing supply conditions in assessing the macrofinancial effects of rising interest rates.
Housing And The Monetary Transmission Mechanism
DOWNLOAD
Author : Frederic S. Mishkin
language : en
Publisher:
Release Date : 2007
Housing And The Monetary Transmission Mechanism written by Frederic S. Mishkin and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2007 with Housing categories.
The housing market is of central concern to monetary policy makers. To achieve the dual goals of price stability and maximum sustainable employment, monetary policy makers must understand the role that housing plays in the monetary transmission mechanism if they are to set policy instruments appropriately. In this paper, I examine what we know about the role of housing in the monetary transmission mechanism and then explore the implications of this knowledge for the conduct of monetary policy. I begin with a theoretical and empirical review of the main housing-related channels of the transmission mechanism. These channels include the ways interest rates directly influence the user cost of housing capital, expectations of future house-price movements, and housing supply; and indirectly influence the real economy through standard wealth effects from house prices, balance sheet, credit-channel effects on consumer spending, and balance sheet, credit-channel effects on housing demand. I then consider the interaction of financial stability with the monetary transmission mechanism, and discuss the ways in which the housing sector might be a source of financial instability, and whether such instability could affect the ability of a central bank to stabilize the overall macroeconomy. I conclude with a discussion of two key policy issues. First, how can monetary policy makers deal with the uncertainty with regard to housing-related monetary transmission mechanisms? And second, how can monetary policy best respond to fluctuations in asset prices, especially house prices, and to possible asset-price bubbles?
Monetary Tightening In The Euro Area
DOWNLOAD
Author : Paul Egan
language : en
Publisher:
Release Date : 2023
Monetary Tightening In The Euro Area written by Paul Egan and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2023 with categories.
In this paper we assess the implications for housing supply across the Euro Area of the recent tightening in monetary policy. Official monetary policy rates have risen in response to the sustained period of inflation experienced across countries due to the aftermath of the Covid epidemic and the war in the Ukraine. The increase in official rates has been significant and sustained with the European Central Bank (ECB) increasing rates by over 400 basis points in just one year. At the same time, a number of European economies have noted a relative shortage in housing supply as activity levels struggle to keep pace with the increase in housing demand. A period of monetary tightening has significant implications for the residential property market as it can have an adverse impact through both a demand-side channel (reduced affordability for prospective homeowners) and on the supply-side (increase in funding costs for the construction sector). In this paper we address this question by allowing changes in policy rates to impact the residential market through a number of market interest rates. Using a structural VAR approach, we include information on ECB policy rates and two market interest rates; the mortgage and corporate lending rate. Consequently, the change in the official rate operates through both a demand and a supply-side channel. We then examine the implications for housing supply of the contraction in monetary policy across Euro Area countries. Our results indicate that a monetary shock can have a significantly negative impact on housing investment with the effect varying somewhat across countries. The heterogeneity of the impact raises issues concerning the efficacy and efficiency of the monetary policy transmission mechanism.
Monetary Policy And The Housing Bubble
DOWNLOAD
Author : Jane Dokko
language : en
Publisher:
Release Date : 2009
Monetary Policy And The Housing Bubble written by Jane Dokko and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2009 with Monetary policy categories.
Hot Property
DOWNLOAD
Author : Rob Nijskens
language : en
Publisher: Springer
Release Date : 2019-06-14
Hot Property written by Rob Nijskens and has been published by Springer this book supported file pdf, txt, epub, kindle and other format this book has been release on 2019-06-14 with Business & Economics categories.
This open access book discusses booming housing markets in cities around the globe, and the resulting challenges for policymakers and central banks. Cities are booming everywhere, leading to a growing demand for urban housing. In many cities this demand is out-pacing supply, which causes house prices to soar and increases the pressure on rental markets. These developments are posing major challenges for policymakers, central banks and other authorities responsible for ensuring financial stability, and economic well-being in general.This volume collects views from high-level policymakers and researchers, providing essential insights into these challenges, their impact on society, the economy and financial stability, and possible policy responses. The respective chapters address issues such as the popularity of cities, the question of a credit-fueled housing bubble, the role of housing supply frictions and potential policy solutions. Given its scope, the book offers a revealing read and valuable guide for everyone involved in practical policymaking for housing markets, mortgage credit and financial stability.
Guaranteed To Fail
DOWNLOAD
Author : Viral V. Acharya
language : en
Publisher: Princeton University Press
Release Date : 2011-03-14
Guaranteed To Fail written by Viral V. Acharya and has been published by Princeton University Press this book supported file pdf, txt, epub, kindle and other format this book has been release on 2011-03-14 with Business & Economics categories.
Why America's public-private mortgage giants threaten the world economy—and what to do about it The financial collapse of Fannie Mae and Freddie Mac in 2008 led to one of the most sweeping government interventions in private financial markets in history. The bailout has already cost American taxpayers close to $150 billion, and substantially more will be needed. The U.S. economy--and by extension, the global financial system--has a lot riding on Fannie and Freddie. They cannot fail, yet that is precisely what these mortgage giants are guaranteed to do. How can we limit the damage to our economy, and avoid making the same mistakes in the future? Guaranteed to Fail explains how poorly designed government guarantees for Fannie Mae and Freddie Mac led to the debacle of mortgage finance in the United States, weighs different reform proposals, and provides sensible, practical recommendations. Despite repeated calls for tougher action, Washington has expanded the scope of its guarantees to Fannie and Freddie, fueling more and more housing and mortgages all across the economy--and putting all of us at risk. This book unravels the dizzyingly immense, highly interconnected businesses of Fannie and Freddie. It proposes a unique model of reform that emphasizes public-private partnership, one that can serve as a blueprint for better organizing and managing government-sponsored enterprises like Fannie Mae and Freddie Mac. In doing so, Guaranteed to Fail strikes a cautionary note about excessive government intervention in markets.
Housing Supply House Prices And Monetary Policy
DOWNLOAD
Author : Meltem Chadwick
language : en
Publisher:
Release Date : 2022
Housing Supply House Prices And Monetary Policy written by Meltem Chadwick and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2022 with Housing categories.
World Economic Outlook April 2024
DOWNLOAD
Author : International Monetary
language : en
Publisher: International Monetary Fund
Release Date : 2024-04-16
World Economic Outlook April 2024 written by International Monetary and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2024-04-16 with Business & Economics categories.
The latest World Economic Outlook reports economic activity was surprisingly resilient through the global disinflation of 2022–23, despite significant central bank interest rate hikes to restore price stability. Risks to the global outlook are now broadly balanced compared with last year. Monetary policy should ensure that inflation touches down smoothly, while a renewed focus on fiscal consolidation is needed to rebuild room for budgetary maneuver and to ensure debt sustainability. Structural reforms are crucial to revive medium-term growth prospects amid constrained policy space.
Future Of The Housing Industry And Federal Housing Policy
DOWNLOAD
Author : United States. Congress. House. Committee on Banking, Finance, and Urban Affairs. Subcommittee on Housing and Community Development
language : en
Publisher:
Release Date : 1982
Future Of The Housing Industry And Federal Housing Policy written by United States. Congress. House. Committee on Banking, Finance, and Urban Affairs. Subcommittee on Housing and Community Development and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1982 with Construction industry categories.
Housing And The Financial Crisis
DOWNLOAD
Author : Edward L. Glaeser
language : en
Publisher: University of Chicago Press
Release Date : 2013-08-19
Housing And The Financial Crisis written by Edward L. Glaeser and has been published by University of Chicago Press this book supported file pdf, txt, epub, kindle and other format this book has been release on 2013-08-19 with Business & Economics categories.
Conventional wisdom held that housing prices couldn’t fall. But the spectacular boom and bust of the housing market during the first decade of the twenty-first century and millions of foreclosed homeowners have made it clear that housing is no different from any other asset in its ability to climb and crash. Housing and the Financial Crisis looks at what happened to prices and construction both during and after the housing boom in different parts of the American housing market, accounting for why certain areas experienced less volatility than others. It then examines the causes of the boom and bust, including the availability of credit, the perceived risk reduction due to the securitization of mortgages, and the increase in lending from foreign sources. Finally, it examines a range of policies that might address some of the sources of recent instability.