The eloquent advocacy for moderate inflation at times of peril goes back to Irving Fisher’s seminal paper on the debt deflation:
The housing market and the case for higher inflation targets in the US and the Eurozone
Joshua Aizenman, Menzie D. Chinn , 15 May 2012
A proposal to reform the US mortgage finance
Viral Acharya, Matthew Richardson, Stijn Van Nieuwerburgh, Lawrence J. White, 12 May 2011
The goal of reforming housing finance should be to ensure economic efficiency, both in the primary mortgage market (origination) as well as in the secondary mortgage market (securitisation). By economic efficiency, we have in mind a housing finance system that:
Is the US bankruptcy code to blame for overinvestment in housing by US households?
Harry Huizinga, Luc Laeven, Reint Gropp, Stefano Corradin, 25 January 2011
The US subprime crisis erupted because US households had borrowed too much, and had invested too much in housing. In the aftermath of the crisis, the US financial system is being revamped to prevent a recurrence of too much risky borrowing – for instance, by adopting tougher capital adequacy standards for banks.
Can interest rates explain the US housing boom and bust?
Edward Glaeser, Joshua Gottlieb, Joseph Gyourko, 28 August 2010
Between 2001 and the end of 2005, the Standard and Poor’s/Case-Shiller 20 City Composite House Price Index rose by 46% in real terms. By the first quarter of 2009 the index had dropped by about one-third before stabilising. The volatility of the Federal Housing Finance Agency (FHFA) repeat-sales price index was less extreme but still severe.
Just how risky are China’s housing markets?
Joseph Gyourko, Yongheng Deng , Jing Wu, 28 July 2010
China is experiencing spectacularly fast growth – so fast that many fear it is driven by a bubble – a property bubble to be precise. Recent memories of what happened when the US housing market bubble burst make the possibility of a Chinese housing bubble a critical concern for the world economy. So, is there a bubble or is it simply hot air?
How housing slumps end
Agustín S. Bénétrix, Barry Eichengreen, Kevin H O’Rourke, 21 July 2010
As concern over the sustainability of public debts has risen to the top of the list of macroeconomic concerns, it has become too easy to forget that this crisis started with a housing slump (Cecchetti 2007). How it ends will also depend, in part, on housing markets.
The responsible homeowner reward: An incentive-based solution to strategic mortgage default
Alex Edmans, 17 July 2010
Three years after the US housing bubble burst, mortgage default is still a headline issue. Apart of the economic waste and personal losses, defaults and foreclosures can ruin neighbourhoods. Foreclosure often results in vandalism, disinvestment, and other negative spillover effects in the neighbourhood (Lin et al. 2009).
Diverging trends in money demand and housing across the Eurozone
Paul van den Noord, Ralph Setzer, Guntram Wolff, 15 May 2010
Ever since the inception of the single currency the monetary policy framework of the ECB has stressed the importance of monetary aggregates.
China’s property bubble
Takatoshi Ito, 15 April 2010
Many of our Chinese friends who live in Shanghai and Beijing are telling us that the property inflation rate exceeds 50% – and 100% in some areas. Available housing for a young couple is far from downtown, closer to one-hour commuting distance, and still more than ten times the average salary.
The Spanish trade-off: Bricks vs. brains
Antonio Cabrales, Juan Dolado, José García-Montalvo, 8 December 2008
It is by now clear that Spain is in the throes of its deepest economic slump since the early eighties. By comparison, the previous downturn in the early nineties looks slight. After a miraculous decade where GDP and employment grew at average annual rates close to 4% and 5%, respectively, the latest officially released figures (corresponding to 2008: III) paint a rather bleak picture.
- The case for 4% inflationBall
- Helicopter money as a policy optionReichlin, Turner, Woodford
- The banking crisis as a giant carry trade gone wrongAcharya, Steffen
- Everything the IMF wanted to know about financial regulation and wasn’t afraid to askBair
- Rethinking macroeconomic policy: Getting granularBlanchard, Dell'Ariccia, Mauro
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
- Debt, deleveraging, and the liquidity trap: A new modelKrugman
Baldwin, Kawai, Wignaraja, 11 June 2013
Giavazzi, Portes, Weder di Mauro, Wyplosz
CEPR Policy Research
- The "Greatest" Carry Trade Ever? Understanding Eurozone Bank RisksAcharya, Steffen
- Political Credit Cycles: The Case of the Euro ZoneFernández-Villaverde, Garicano, Santos
- Winning by Losing: Incentive Incompatibility in Multiple QualifiersDagaev, Sonin
- Income and schooling