Macroprudential Measures for Addressing Housing Sector Risks

6 Pages Posted: 5 Oct 2016

See all articles by Dong He

Dong He

International Monetary Fund (IMF) - Monetary and Exchange Affairs Department

Erlend W. Nier

International Monetary Fund (IMF)

Heedon Kang

International Monetary Fund (IMF)

Date Written: September 2016

Abstract

Many episodes of financial instability and crises have been associated with housing market booms followed by busts. Reinhart and Rogoff (2009) show that the six major historical episodes of banking crises in advanced economies since the mid-1970s were all associated with a housing bust. They document that this pattern can also be found in many emerging market crises, including the Asian financial crisis of 1997–98, with the magnitude of house price declines being broadly similar in both advanced and emerging market countries. Since house purchases typically involve household borrowing, house prices are likely to be strongly driven by credit conditions and household leverage.

Full publication: Macroprudential Policy

Suggested Citation

He, Dong and Nier, Erlend W. and Kang, Heedon, Macroprudential Measures for Addressing Housing Sector Risks (September 2016). BIS Paper No. 86p, Available at SSRN: https://ssrn.com/abstract=2844274

Dong He (Contact Author)

International Monetary Fund (IMF) - Monetary and Exchange Affairs Department ( email )

700 19th Street NW
Washington, DC 20431
United States
(202) 623-4062 (Phone)
(202) 589-4062 (Fax)

Erlend W. Nier

International Monetary Fund (IMF) ( email )

Heedon Kang

International Monetary Fund (IMF) ( email )

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

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