Global Housing Cycles

Author/Editor: Deniz Igan ; Prakash Loungani
Publication Date: August 01, 2012
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
Summary: Housing cycles and their impact on the financial system and the macroeconomy have become the center of attention following the global financial crisis. This paper documents the characteristics of housing cycles in a large set of countries, and examines the determinants of house price movements. Empirical analysis shows that house price dynamics are mostly driven by income and demographics but fluctuations in these fundamentals and credit conditions can create deviations from the implied equilibrium path. We conclude with a discussion of the macroeconomic implications of house price corrections.
Series: Working Paper No. 12/217
Subject(s): Developed countries | Emerging markets | Financial systems | Housing prices

Author's Keyword(s): Housing Cycles | Mortgage Markets
Publication Date: August 01, 2012
ISBN/ISSN: 9781475505672/1018-5941 Format: Paper
Stock No: WPIEA2012217 Pages: 56
US$18.00 (Academic Rate:
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