Macroprudential Policies And House Prices In Europe

Author : Mr.Marco Arena,Tingyun Chen,Mr.Seung M Choi,Ms.Nan Geng,Cheikh A. Gueye,Mr.Tonny Lybek,Mr.Evan Papageorgiou,Yuanyan Sophia Zhang
Publisher : International Monetary Fund
Page : 51 pages
File Size : 51,6 Mb
Release : 2020-02-20
Category : Business & Economics
ISBN : 9781513512259

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Macroprudential Policies and House Prices in Europe by Mr.Marco Arena,Tingyun Chen,Mr.Seung M Choi,Ms.Nan Geng,Cheikh A. Gueye,Mr.Tonny Lybek,Mr.Evan Papageorgiou,Yuanyan Sophia Zhang Pdf

Macroprudential policy in Europe aligns with the objective of limiting systemic risk, namely the risk of widespread disruption to the provision of financial services that is caused by an impairment of all or parts of the financial system and that can cause serious negative consequences for the real economy.

Author : Ms. Laura Valderrama
Publisher : International Monetary Fund
Page : 46 pages
File Size : 48,8 Mb
Release : 2023-03-24
Category : Business & Economics
ISBN : 9798400237775

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Calibrating Macroprudential Policies in Europe Amid Rising Housing Market Vulnerability by Ms. Laura Valderrama Pdf

Housing market developments are in the spotlight in Europe. Over-stretched valuations amid tightening financial conditions and a cost-of-living crisis have increased risks of a sustained downturn and exposed challenging trade-offs for macroprudential policy between ensuring financial system resilience and smoothing the macro-financial cycle. Against this backdrop, this paper provides detailed considerations regarding how to (re)set macroprudential policy tools in response to housing-related systemic risk in Europe, providing design solutions to avoid unintended consequences during a tightening phase, and navigating the trade-offs between managing the build-up of vulnerabilities and the macro-financial cycle in a downturn. It also proposes a novel framework to measure the effectiveness of tools and avoid overlaps by quantifying the risks addressed by different macroprudential instruments. Finally, it introduces a taxonomy allowing to assess a country’s macroprudential stance and whether adjustments to current policy settings are warranted—such as the relaxation of capital-based tools and possibly some borrower-based measures in the event of a more severe downturn.

Author : Mr.Jerome Vandenbussche,Ms.Ursula Vogel,Ms.Enrica Detragiache
Publisher : International Monetary Fund
Page : 36 pages
File Size : 40,7 Mb
Release : 2012-12-27
Category : Business & Economics
ISBN : 9781475587449

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Macroprudential Policies and Housing Price by Mr.Jerome Vandenbussche,Ms.Ursula Vogel,Ms.Enrica Detragiache Pdf

Several countries in Central, Eastern and Southeastern Europe used a rich set of prudential instruments in response to last decade’s credit and housing boom and bust cycles. We collect detailed information on these policy measures in a comprehensive database covering 16 countries at a quarterly frequency. We use this database to investigate whether the policy measures had an impact on housing price inflation. Our evidence suggests that some—but not all—measures did have an impact. These measures were changes in the minimum CAR and non-standard liquidity measures (marginal reserve requirements on foreign funding, marginal reserve requirements linked to credit growth).

Author : International Monetary Fund. European Dept.
Publisher : International Monetary Fund
Page : 28 pages
File Size : 54,5 Mb
Release : 2018-11-08
Category : Business & Economics
ISBN : 9781484375402

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Regional Economic Outlook, October 2018, Europe by International Monetary Fund. European Dept. Pdf

Economic activity continued to expand in the first half of 2018, albeit at a slower-than-expected pace, mainly in advanced Europe. Domestic demand, supported by stronger employment and wages, remains the main engine of growth. However, the external environment has become less supportive and is expected to soften further in 2019 owing to slowing global demand, trade tensions, and higher energy prices. Tighter financial conditions in vulnerable emerging market economies and maturing business cycles are also weighing on activity. Accordingly, growth is projected to moderate from 2.8 percent in 2017 to 2.3 percent in 2018 and 1.9 percent in 2019. That said, it is expected to remain above potential in most countries in the region.

Author : Mr.Tigran Poghosyan
Publisher : International Monetary Fund
Page : 42 pages
File Size : 53,5 Mb
Release : 2019-03-01
Category : Business & Economics
ISBN : 9781498301909

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How Effective is Macroprudential Policy? Evidence from Lending Restriction Measures in EU Countries by Mr.Tigran Poghosyan Pdf

This paper assesses the effectiveness of lending restriction measures, such as loan-to-value and debt-service-to-income ratios, in affecting developments in house prices and credit. We use data on 99 lending standard restrictions implemented in 28 EU countries over 1990–2018. The results suggest that lending restriction measures are generally effective in curbing house prices and credit. However, the impact is delayed and reaches its peak only after three years. In addition, the impact is asymmetric, with tightening measures having weaker association with target variables compared to loosening measures. The association is stronger in countries outside of euro area and for legally-binding measures and measures involving sanctions. The results have practical implications for macroprudential authorities.

Author : Rob Nijskens,Melanie Lohuis,Paul Hilbers,Willem Heeringa
Publisher : Springer
Page : 220 pages
File Size : 46,5 Mb
Release : 2019-06-14
Category : Business & Economics
ISBN : 9783030116743

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Hot Property by Rob Nijskens,Melanie Lohuis,Paul Hilbers,Willem Heeringa Pdf

This open access book discusses booming housing markets in cities around the globe, and the resulting challenges for policymakers and central banks. Cities are booming everywhere, leading to a growing demand for urban housing. In many cities this demand is out-pacing supply, which causes house prices to soar and increases the pressure on rental markets. These developments are posing major challenges for policymakers, central banks and other authorities responsible for ensuring financial stability, and economic well-being in general.This volume collects views from high-level policymakers and researchers, providing essential insights into these challenges, their impact on society, the economy and financial stability, and possible policy responses. The respective chapters address issues such as the popularity of cities, the question of a credit-fueled housing bubble, the role of housing supply frictions and potential policy solutions. Given its scope, the book offers a revealing read and valuable guide for everyone involved in practical policymaking for housing markets, mortgage credit and financial stability.

Author : International Monetary,International Monetary Fund. Asia and Pacific Dept
Publisher : International Monetary Fund
Page : 50 pages
File Size : 45,5 Mb
Release : 2022-05-13
Category : Business & Economics
ISBN : 9798400209666

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New Zealand: Selected Issues by International Monetary,International Monetary Fund. Asia and Pacific Dept Pdf

New Zealand: Selected Issues

Author : Mr.Thierry Tressel,Ms.Yuanyan Sophia Zhang
Publisher : International Monetary Fund
Page : 32 pages
File Size : 43,7 Mb
Release : 2016-01-12
Category : Business & Economics
ISBN : 9781513547404

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Effectiveness and Channels of Macroprudential Instruments by Mr.Thierry Tressel,Ms.Yuanyan Sophia Zhang Pdf

The crisis has highlighted the importance of setting up macro-prudential oversight frameworks, having effective macro-prudential instruments in place to be called upon to mitigate growing financial imbalances as needed. We develop a new approach using the euro area Bank Lending Survey to assess the effectiveness of macro-prudential policies in containing credit growth and house price appreciation in mortgage markets. We find instruments targeting the cost of bank capital most effective in slowing down mortgage credit growth, and that the impact is transmitted mainly through price margins, the same banking channel as monetary policy. Limits on loan-to-value ratios are also effective, especially when monetary policy is excessively loose.

Author : Dilyana Dimova,Ms.Piyabha Kongsamut,Jérôme Vandenbussche
Publisher : International Monetary Fund
Page : 81 pages
File Size : 45,7 Mb
Release : 2016-02-15
Category : Business & Economics
ISBN : 9781498342872

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Macroprudential Policies in Southeastern Europe by Dilyana Dimova,Ms.Piyabha Kongsamut,Jérôme Vandenbussche Pdf

This paper presents a detailed account of the rich set of macroprudential measures taken in four Southeastern European countries—Bulgaria, Croatia, Romania, and Serbia—during their synchronized boom and bust cycles in 2003–12, and assesses their effectiveness. We find that only strong measures helped contain domestic credit growth, the share of foreigncurrency- denominated loans provided by the domestic banking sector, or the domestic banking sector’s reliance on foreign borrowing during the boom years. We also find that circumvention via direct external borrowing often fully offset the effectiveness of these strict measures, and thatmeasures taken during the bust had no discernible impact. We conclude that (i) proper calibration of macroprudential measures is of the essence; (ii) only strong, broad-based macroprudential measures can contain credit booms; (iii) econometric studies of macroprudential policy effectiveness should focus on measures rather than on instruments (i.e. classes of measures) and in so doing allow for possible non-linear and state-contingent effects.

Author : GASTON. SAHAY GELOS (RATNA.)
Publisher : International Monetary Fund
Page : 2040 pages
File Size : 49,8 Mb
Release : 2023
Category : Electronic
ISBN : 9798400211263

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SHOCKS AND CAPITAL FLOWS by GASTON. SAHAY GELOS (RATNA.) Pdf

Author : International Monetary Fund. Monetary and Capital Markets Department
Publisher : International Monetary Fund
Page : 27 pages
File Size : 44,7 Mb
Release : 2013-03-15
Category : Business & Economics
ISBN : 9781475591156

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European Union by International Monetary Fund. Monetary and Capital Markets Department Pdf

This article reviews the European Systematic Risk Board (ESRB), its role, approach, outputs, and effects in the European Union. The ESRB is the reason for macroprudential oversight of financial systems. Macroprudential policy is used to identify and reduce financial risks and limit financial imbalances. This policy is for both upturns and downturns of economic cycles. The role of the ESRB should be further enhanced to cover the entire financial system and institutions.

Author : Mr.Dominic Quint,Mr.Pau Rabanal
Publisher : International Monetary Fund
Page : 61 pages
File Size : 49,8 Mb
Release : 2013-10-14
Category : Business & Economics
ISBN : 9781484333693

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Monetary and Macroprudential Policy in an Estimated DSGE Model of the Euro Area by Mr.Dominic Quint,Mr.Pau Rabanal Pdf

In this paper, we study the optimal mix of monetary and macroprudential policies in an estimated two-country model of the euro area. The model includes real, nominal and financial frictions, and hence both monetary and macroprudential policy can play a role. We find that the introduction of a macroprudential rule would help in reducing macroeconomic volatility, improve welfare, and partially substitute for the lack of national monetary policies. Macroprudential policy would always increase the welfare of savers, but their effects on borrowers depend on the shock that hits the economy. In particular, macroprudential policy may entail welfare costs for borrowers under technology shocks, by increasing the countercyclical behavior of lending spreads.

Author : Giancarlo Corsetti,Joao B. Duarte,Samuel Mann
Publisher : International Monetary Fund
Page : 63 pages
File Size : 44,9 Mb
Release : 2020-06-26
Category : Business & Economics
ISBN : 9781513548746

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One Money, Many Markets: Monetary Transmission and Housing Financing in the Euro Area by Giancarlo Corsetti,Joao B. Duarte,Samuel Mann Pdf

We study the transmission of monetary shocks across euro-area countries using a dynamic factor model and high-frequency identification. We develop a methodology to assess the degree of heterogeneity, which we find to be low in financial variables and output, but significant in consumption, consumer prices, and variables related to local housing and labor markets. Building a small open economy model featuring a housing sector and calibrating it to Spain, we show that varying the share of adjustable-rate mortgages and loan-to-value ratios explains up to one-third of the cross-country heterogeneity in the responses of output and private consumption.

Author : Dilyana Dimova,Ms.Piyabha Kongsamut,Jérôme Vandenbussche
Publisher : International Monetary Fund
Page : 81 pages
File Size : 48,5 Mb
Release : 2016-02-15
Category : Business & Economics
ISBN : 9781498343091

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Macroprudential Policies in Southeastern Europe by Dilyana Dimova,Ms.Piyabha Kongsamut,Jérôme Vandenbussche Pdf

This paper presents a detailed account of the rich set of macroprudential measures taken in four Southeastern European countries—Bulgaria, Croatia, Romania, and Serbia—during their synchronized boom and bust cycles in 2003–12, and assesses their effectiveness. We find that only strong measures helped contain domestic credit growth, the share of foreigncurrency- denominated loans provided by the domestic banking sector, or the domestic banking sector’s reliance on foreign borrowing during the boom years. We also find that circumvention via direct external borrowing often fully offset the effectiveness of these strict measures, and thatmeasures taken during the bust had no discernible impact. We conclude that (i) proper calibration of macroprudential measures is of the essence; (ii) only strong, broad-based macroprudential measures can contain credit booms; (iii) econometric studies of macroprudential policy effectiveness should focus on measures rather than on instruments (i.e. classes of measures) and in so doing allow for possible non-linear and state-contingent effects.

Author : TIGRA. POGHOSYAN
Publisher : Unknown
Page : 128 pages
File Size : 44,6 Mb
Release : 2024-06-13
Category : Electronic
ISBN : 1498301924

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HOW EFFECTIVE IS MACROPRUDENTIAL POLICY? EVIDENCE FROM LENDING RESTRICTION MEASURES IN EU COUNTRIES by TIGRA. POGHOSYAN Pdf