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Is the Incidence of the Monetary Policy on the Mortgage Market Possible?

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Author Info
Teodora Barbu (Academy of Economic Studies, Bucharest)
Georgeta Vintila (Academy of Economic Studies, Bucharest)

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Abstract

The article sets out to approach mortgage markets and their impact on the financial structure and on the financial stability. The synthesizing of studies done lead to the conclusion that the institutional characteristics of the mortgage market influence the monetary policy shocks on the prices of housing and consumption. In developed countries, transmission of such shocks is stronger because of mortgage markets mature and flexible. Regarding this aspect, there are significant divergences in the structure of the mortgage market between the main industrialized countries. Also, the reaction of central banks to the speculative bubbles on the mortgage markets is extremely reduced, thus formulating a series of interrogations related to the lack of concern of monetary authorities regarding the price of real assets.

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Publisher Info
Article provided by Asociatia Generala a Economistilor din Romania - AGER in its journal Theoretical and Applied Economics.

Volume (Year): 03(532) (2009)
Issue (Month): 03(532) (March)
Pages: 29-40
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Handle: RePEc:agr:journl:v:03(532):y:2009:i:03(532):p:29-40

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Related research
Keywords: mortgage market; monetary policy; speculative bubble; central bank; real assets.;

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This page was last updated on 2009-11-25.


This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.