Cheap Money and the Housing Boom in Interwar Britain: An Econometric Appraisal
The author presents an econometric model of housing investment and establishes the quantitative importanc e of cheap money in the British housing boom of the 1930s. Cheap mone y is shown to account for about half of the initial rise in housing i nvestment. In addition, he examines the transmission mechanism by mod eling building society behavior. He shows that it was a fall in the l iquidity ratio, rather than a rise in net deposits, which was the pri mary source of the initial increase in building society advances. Copyright 1987 by Blackwell Publishers Ltd and The Victoria University of Manchester
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Volume (Year): 55 (1987)
Issue (Month): 4 (December)
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