House price bubbles, and their aftermath, have become a focus of macro-economic policy concern in most developed countries. This book elucidates the two-way relationship between house-price fluctuations and economic fundamentals. Housing has many features which make it distinct from other assets, like equity. Real estate is not only an asset but also a durable consumption good for households, providing shelter and other housing services. As a result, a house is often the largest and most important asset of households and therefore accounts for a major share of household wealth. Similarly a large share of bank assets is tied to housing values. House price fluctuations may, therefore, have a major effect on economic activity and the soundness of the financial system.
Following an introductory chapter, the book is structured into three parts. The first demonstrates the importance of house prices as determinants or indicators of inflation and economic activity. The second focuses on the inter-relationships between bank credit extension and housing prices, and how bubbles can lead to financial crises. The third discusses resultant public policy issues, such as whether, and how, to include housing prices in a general inflation index, and how to restrain the housing/bank credit cycle.
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The macroeconomic implications of asset price flucuations have received increasing attention in academic and policy circles recently, in large part due to the recent boom-bust bubbles in the equity and now housing markets. This book aims to investigate the role of asset prices for various aspects of the macroeconomy.
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HOUSE PRICES AND ECONOMIC ACTIVITY; HOUSE PRICES AND FINANCIAL STABILITY; IMPLICATIONS OF HOUSE PRICE FLUCTUATIONS FOR PUBLIC POLICY
Deals comprehensively with the effects of housing price bubbles and busts, a current key macro-economic concern
Provides the latest empirical research on this key topic in a form understandable to anyone interested in the causes and effects of housing price fluctuations on the macro-economy
Makes a number of public policy recomendations to reduce the harmful effects of bank lending and housing price fluctuations
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Charles Goodhart, CBE, FBA is the Norman Sosnow Professor of Banking and Finance at the London School of Economics and is Programme Director of the Financial Markets Group. Before joining the London School of Economics in 1985, he worked at the Bank of England for seventeen years as a monetary adviser, becoming a Chief Adviser in 1980. During 1986, Prof. Goodhart helped to found, with Mervyn King, the Financial Markets Group at London School of Economics. In 1997,
he was appointed one of the outside independent members of the Bank of England's Monetary Policy Committee until May 2000. He has taught at Cambridge University and the London School of Economics.
Boris Hofmann is an economist at the Deutsche Bundesbank in Frankfurt am Main and a non-resident senior fellow at the Center for European Integration Studies (ZEI) of the University of Bonn. He received his Ph.D. from the University of Bonn and has written and published a number of articles on topics in monetary and financial economics.
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Deals comprehensively with the effects of housing price bubbles and busts, a current key macro-economic concern
Provides the latest empirical research on this key topic in a form understandable to anyone interested in the causes and effects of housing price fluctuations on the macro-economy
Makes a number of public policy recomendations to reduce the harmful effects of bank lending and housing price fluctuations
Les mer
Produktdetaljer
ISBN
9780199204595
Publisert
2006
Utgiver
Vendor
Oxford University Press
Vekt
602 gr
Høyde
250 mm
Bredde
180 mm
Dybde
30 mm
Aldersnivå
P, 06
Språk
Product language
Engelsk
Format
Product format
Innbundet
Antall sider
256