Year: 2022
Author: Illing, Gerhard
Vierteljahrshefte zur Wirtschaftsforschung, Vol. 91 (2022), Iss. 1 : pp. 29–40
Abstract
A typical feature of recent financial crises is a strong synchronization of credit in the private real estate market with real estate prices. The paper examines the relationship between real estate prices, debt, financial crises, and fluctuations in aggregate economic activity. Since real estate evaluation plays a key role in lending, complex dynamics with feedback effects emerge. These dynamics do not only amplify fluctuations via overshooting in the real estate market. They can also result in boom-and-bust phases for the overall economy, endangering the stability of the financial system and possibly triggering long-term stagnation. Macro-prudential measures are needed to dampen these dynamics, thus enabling a more robust financial system.
Journal Article Details
Publisher Name: Global Science Press
Language: German
DOI: https://doi.org/10.3790/vjh.91.1.29
Vierteljahrshefte zur Wirtschaftsforschung, Vol. 91 (2022), Iss. 1 : pp. 29–40
Published online: 2022-01
AMS Subject Headings: Duncker & Humblot, Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 12
Keywords: E21 E43 R3 Immobilienpreise Kreditboom Schuldendynamik Stagnation
Author Details
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