How to Deal with Real Estate Booms: Lessons from Country Experiences

59 Pages Posted: 2 May 2011

See all articles by Christopher Crowe

Christopher Crowe

International Monetary Fund (IMF)

Giovanni Dell'Ariccia

International Monetary Fund (IMF) - Research Department; Centre for Economic Policy Research (CEPR)

Deniz Igan

International Monetary Fund (IMF) - Financial Studies Division

Pau Rabanal

International Monetary Fund

Date Written: April 2011

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.

Keywords: Bank credit, Business cycles, Cross country analysis, Demand, Fiscal policy, Housing, Monetary policy, Private sector, Property taxes, Real estate prices, Taxes

Suggested Citation

Crowe, Christopher and Dell'Ariccia, Giovanni and Igan, Deniz and Rabanal, Pau, How to Deal with Real Estate Booms: Lessons from Country Experiences (April 2011). IMF Working Paper No. 11/91, Available at SSRN: https://ssrn.com/abstract=1826544

Christopher Crowe

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Giovanni Dell'Ariccia

International Monetary Fund (IMF) - Research Department ( email )

700 19th Street NW
Washington, DC 20431
United States
202-623-8135 (Phone)
202-623-4352 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Deniz Igan

International Monetary Fund (IMF) - Financial Studies Division ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Pau Rabanal

International Monetary Fund ( email )

700 19th Street NW
Washington, DC 20431
United States

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