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How to Deal with Real Estate Booms: Lessons from Country Experiences

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Author Info

  • Pau Rabanal
  • Christopher W. Crowe
  • Giovanni Dell'Ariccia
  • Deniz Igan

Abstract

The financial crisis showed, once again, that neglecting real estate booms can have disastrous consequences. In this paper, we spell out the circumstances under which a more active policy agenda on this front would be justified. Then, we offer tentative insights on the pros and cons as well as implementation challenges of various policy tools that can be used to contain the damage to the financial system and the economy from real estate boom-bust episodes.

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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 11/91.

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Length: 21
Date of creation: 01 Apr 2011
Date of revision:
Handle: RePEc:imf:imfwpa:11/91

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Related research

Keywords: Bank credit; Housing; Property taxes; Real estate prices;

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References

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Citations

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Cited by:
  1. Luci Ellis & Mariano Kulish & Stephanie Wallace, 2012. "Property Market Cycles as Paths to Financial Distress," RBA Annual Conference Volume, in: Alexandra Heath & Frank Packer & Callan Windsor (ed.), Property Markets and Financial Stability Reserve Bank of Australia.
  2. European Commission, 2011. "Tax Reforms in EU Member States 2011: tax policy challenges for economic growth and fiscal sustainability," Taxation Papers 28, Directorate General Taxation and Customs Union, European Commission.
  3. Alessio Ciarlone, 2012. "Wealth effects in emerging economies," Temi di discussione (Economic working papers) 843, Bank of Italy, Economic Research and International Relations Area.
  4. Kenneth Kuttner & Ilhyock Shim, 2012. "Taming the Real Estate Beast: The Effects of Monetary and Macroprudential Policies on Housing Prices and Credit," RBA Annual Conference Volume, in: Alexandra Heath & Frank Packer & Callan Windsor (ed.), Property Markets and Financial Stability Reserve Bank of Australia.
  5. European Commission, 2012. "Taxation trends in the European Union: 2012 edition," Taxation trends 2012, Directorate General Taxation and Customs Union, European Commission.
  6. Francis E Warnock & Veronica Cacdac Warnock, 2012. "Developing Housing Finance Systems," RBA Annual Conference Volume, in: Alexandra Heath & Frank Packer & Callan Windsor (ed.), Property Markets and Financial Stability Reserve Bank of Australia.
  7. Giovanni Dell'Ariccia, 2012. "Property Prices and Bank Risk-taking," RBA Annual Conference Volume, in: Alexandra Heath & Frank Packer & Callan Windsor (ed.), Property Markets and Financial Stability Reserve Bank of Australia.
  8. Philippe Bracke, 2011. "How Long Do Housing Cycles Last? A Duration Analysis for 19 OECD Countries," IMF Working Papers 11/231, International Monetary Fund.
  9. Antje Hildebrandt & Katharina Steiner & Karin Wagner & Reiner Martin, 2012. "Residential Property Markets in CESEE EU Member States," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 1, pages 8-30, February.
  10. Mick Silver, 2012. "Why House Price Indexes Differ: Measurement and Analysis," IMF Working Papers 12/125, International Monetary Fund.
  11. International Monetary Fund, 2011. "Policy Instruments To Lean Against The Wind In Latin America," IMF Working Papers 11/159, International Monetary Fund.
  12. Frank Warnock, 2012. "Discussant remarks on John V Duca, John Muellbauer and Anthony Murphy’s paper "Credit standards and the bubble in US house prices: new econometric evidence"," BIS Papers chapters, in: Bank for International Settlements (ed.), Property markets and financial stability, volume 64, pages 69-70 Bank for International Settlements.
  13. Deniz Igan, 2012. "Welcome remarks," BIS Papers chapters, in: Bank for International Settlements (ed.), Dealing with real estate booms and busts, volume 64, pages 59-67 Bank for International Settlements.

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