Benes, Jaromir.
Mitigating the Deadly Embrace in Financial Cycles Countercyclical Buffers and Loan-to-Value Limits / Jaromir Benes. [electronic resource] : Jaromir Benes. - Washington, D.C. : International Monetary Fund, 2016. - 1 online resource (26 p.) - IMF Working Papers . - IMF Working Papers .
This paper presents a new version of MAPMOD (Mark II) to study the effectiveness of macroprudential regulations. We extend the original model by explicitly modeling the housing market. We show how household demand for housing, house prices, and bank mortgages are intertwined in what we call a deadly embrace. Without macroprudential policies, this deadly embrace naturally leads to housing boom and bust cycles, which can be very costly for the economy, as shown by the Global Financial Crisis of 2008-09.
148432305X : 18.00 USD
1018-5941
10.5089/9781484323052.001 doi
Business Cycles
Credit Booms
Credit Demand
Household Credit
Housing Prices
Mitigating the Deadly Embrace in Financial Cycles Countercyclical Buffers and Loan-to-Value Limits / Jaromir Benes. [electronic resource] : Jaromir Benes. - Washington, D.C. : International Monetary Fund, 2016. - 1 online resource (26 p.) - IMF Working Papers . - IMF Working Papers .
This paper presents a new version of MAPMOD (Mark II) to study the effectiveness of macroprudential regulations. We extend the original model by explicitly modeling the housing market. We show how household demand for housing, house prices, and bank mortgages are intertwined in what we call a deadly embrace. Without macroprudential policies, this deadly embrace naturally leads to housing boom and bust cycles, which can be very costly for the economy, as shown by the Global Financial Crisis of 2008-09.
148432305X : 18.00 USD
1018-5941
10.5089/9781484323052.001 doi
Business Cycles
Credit Booms
Credit Demand
Household Credit
Housing Prices