Ray, Sugata; Mishkin, Frederic S. - 2007
supply; and indirectly
through (4) standard wealth effects from house prices, (5) balance sheet, credit-channel
effects on … consumer spending, and (6) balance sheet, credit-channel effects on housing
demand.
Direct Interest Rate Effects through …’s balance sheet, then leads to a decline in the
finance premium.
Another way to think about the effect of higher home equity …