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Mortgaging the future?

Author

Listed:
  • Jorda, Oscar

    () (Federal Reserve Bank of San Francisco)

  • Schularick, Moritz

    () (University of Bonn)

  • Taylor, Alan M.

    () (University of California, Davis)

Abstract

In the six decades following World War II, bank lending measured as a ratio to GDP has quadrupled in advanced economies. To a great extent, this unprecedented expansion of credit was driven by a dramatic growth in mortgage loans. Lending backed by real estate has allowed households to leverage up and has changed the traditional business of banking in fundamental ways. This “Great Mortgaging” has had a profound influence on the dynamics of business cycles.

Suggested Citation

  • Jorda, Oscar & Schularick, Moritz & Taylor, Alan M., 2015. "Mortgaging the future?," FRBSF Economic Letter, Federal Reserve Bank of San Francisco.
  • Handle: RePEc:fip:fedfel:00049
    as

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    File URL: http://www.frbsf.org/economic-research/publications/economic-letter/2015/march/great-mortgaging-business-cycle-recovery/el2015-09.pdf
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    References listed on IDEAS

    as
    1. Valerie Cerra & Sweta Chaman Saxena, 2008. "Growth Dynamics: The Myth of Economic Recovery," American Economic Review, American Economic Association, vol. 98(1), pages 439-457, March.
    2. repec:ucp:bkecon:9780226081946 is not listed on IDEAS
    3. Bordo, Michael D. & Haubrich, Joseph G., 2010. "Credit crises, money and contractions: An historical view," Journal of Monetary Economics, Elsevier, vol. 57(1), pages 1-18, January.
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