A question under intense academic and policy debate since the start of the ongoing severe financial crisis is whether a low monetary-policy rate spurs excessive risk-taking by banks.
Loose monetary policy and excessive credit and liquidity risk-taking by banks
Steven Ongena, José-Luis Peydró, 25 October 2011
Topics: International finance, Monetary policy
Tags: interest rates, monetary policy, risk-taking, subprime loans
The relationship between the recent boom and the current delinquencies in subprime mortgages
Giovanni Dell'Ariccia, Deniz Igan, Luc Laeven, 4 February 2008
Over the last decade, the market for mortgage-backed securities has expanded dramatically, evolving from a small niche segment to a major portion of the overall U.S. mortgage market. The authors of CEPR DP6683 study the relationship between this recent boom and current delinquencies in the subprime mortgage market.
Journalists are entitled to free DP downloads on request; please contact pressoffice@cepr.org. To learn more about subscribing to CEPR's Discussion Paper Series, please visit the CEPR website.
URL: http://www.cepr.org/pubs/new-dps/dplist.asp?dpno=6683.asp
Topics: Financial markets
Tags: credit boom, financial accelerators, lending standards, moral hazard, mortgages, subprime loans
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