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Responding to the housing and financial crises: mortgage lending, mortgage products and government policies

Scanlon, Kathleen; Lunde, Jens; Whitehead, Christine M. E. - London School of Economics (LSE) - 2011

The long period of house price growth in markets across the world ended with the US and global financial crisis of 2007/08. The crisis and the consequent recession had profound effects on mortgage market actors – including households, institutions and governments – in most advanced...

Persistent link: https://www.econbiz.de/10010744864

Mortgage product innovation in advanced economies: more choice, more risk

Scanlon, Kathleen; Lunde, Jens; Whitehead, Christine M. E. - London School of Economics (LSE) - 2008

has worsened. It is in this context that the standard annuity mortgage is increasingly being supplanted by mortgages with … a standard product. Moreover, such mortgages can also be more risky: the interest-only borrower does not accumulate … market share of mortgages with these new features. It analyses trends over the last ten years and discusses the risks of …

Persistent link: https://www.econbiz.de/10010745801

Mortgages and monetary policy

Garriga, Carlos; Kydland, Finn E.; Šustek, Roman - London School of Economics (LSE) - 2013

Mortgage loans are a striking example of a persistent nominal rigidity. As a result, under incomplete markets, monetary policy affects decisions through the cost of new mortgage borrowing and the value of payments on outstanding debt. Observed debt levels and payment to income ratios suggest the...

Persistent link: https://www.econbiz.de/10011126379

Money illusion and housing frenzies

Brunnermeier, Markus K.; Julliard, Christian - London School of Economics (LSE) - 2006

A reduction in inflation can fuel run-ups in housing prices if people suffer from money illusion. For example, investors who decide whether to rent or buy a house by simply comparing monthly rent and mortgage payments do not take into account that inflation lowers future real mortgage costs. We...

Persistent link: https://www.econbiz.de/10011071404

How deep was the September 2001 stock market crisis?: putting recent events on the American and French markets into perspective with an index of market shocks

Maillet, Bertrand; Michel, Thierry - London School of Economics (LSE) - 2002

Markets reacted strongly to the World Trade Center attacks both in Europe and in the United States. The extent of this crisis was difficult to assess at the time, underlining the need for a specific tool to measure the magnitude of financial crises. A first measure was recently proposed and...

Persistent link: https://www.econbiz.de/10010744901