Showing 1 - 10 of 64
There is widespread disagreement about the role of housing wealth in explaining consumption.  This paper exploits liquid and illiquid wealth time series from household balance sheet data for South Africa, previously constructed by the authors, to explain fluctuations in the ratios of...
Persistent link: https://www.econbiz.de/10009364585
In many countries, house prices are subject to boom/bust cycles and in some these are linked to severe economic and financial instability.  Overheating can have both a price and a quantity dimension, but it is likely that they are linked by common drivers.  However, much depends on the...
Persistent link: https://www.econbiz.de/10011004234
After the global financial crisis, there is greater awareness of the need to understand the interactions between the financial sector and the real economy and hence the potential for financial instability.  Data from the financial flow of funds, previously relatively neglected, are now seen as...
Persistent link: https://www.econbiz.de/10011004428
We present a model for Financial fragility in which banks are risk-averse portfolio managers and there is uncertainty over risk management parameters. There is a danger of heightened risk aversion and projects in small economies are assumed to be riskier than those in large economies. In this...
Persistent link: https://www.econbiz.de/10010820278
We model the interaction between two economies where banks exhibit both adverse selection and moral hazard and bank regulators try to resolve these problems. We find that liberalising bank capital flows between economies reduces total welfare by reducing the average size and efficiency of the...
Persistent link: https://www.econbiz.de/10011146251
The consumption behaviour of UK, US and Japanese households is examined and compared using a modern Ando-Modigliani style consumption function.  The models incorporate income growth expectations, income uncertainty, housing collateral and other credit effects.  These models therefore capture...
Persistent link: https://www.econbiz.de/10008464924
I describe a new static (sealed-bid) auction for multiple substitute goods.  As in a two-sided simultaneous multiple round auction (SMRA), bidders bid on multiple assets simultaneously, and bid-takers choose supply functions across assets.  The auction yields more efficiency, revenue,...
Persistent link: https://www.econbiz.de/10011004169
In response to the Great Financial Crisis, the Federal Reserve, the Bank of England and many other central banks have adopted unconventional monetary policy instruments.  We investigate if one of these, purchases of long-term government debt, could be a valuable addition to conventional...
Persistent link: https://www.econbiz.de/10011004254
Inflation targeting central banks will be hampered without good models to assist them to be forward-looking.  Many current inflation models fail to forecast turning points adequately, because they miss key underlying long-run influences.  The world is on the cusp of a dramatic turning point in...
Persistent link: https://www.econbiz.de/10011004415
Disinflationary episodes are a valuable source of information for economic agents trying to learn about the economy.  This paper is especially interested in how a policymaker can themselves learn by disinflating.  The approach differs from the existing literature, which typically focuses on...
Persistent link: https://www.econbiz.de/10009364587