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The importance of the wording of the ECB

Rosa, Carlo; Verga, Giovanni - London School of Economics (LSE) - 2005

This paper analyses the ECB communication, focusing in particular on its transparency dimension. We posit that if the ECB is transparent about its future policy decisions, then we should be able to forecast fairly well its future interest rate setting behaviour. We find that the predicting...

Persistent link: https://www.econbiz.de/10010745720

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

Do rural banks matter? evidence from the Indian social banking experiment

Burgess, Robin; Pande, Rohini - London School of Economics (LSE) - 2003

Lack of access to finance is often cited as a key reason why poor people remain poor. This paper uses data on the Indian rural branch expansion program to provide empirial evidence on this issue. Between 1977 and 1990, the Indian Central Bank mandated that a commercial bank can open a branch in...

Persistent link: https://www.econbiz.de/10010745415

Survive another day: does uncertain financing affect the composition of investment?

Garicano, Luis; Steinwender, Claudia - London School of Economics (LSE) - 2013

We expect firms that face uncertainty about their access to the financial markets to prioritize shorter term investments over longer term ones. Using a high quality panel data set, and a difference-in-differences approach to control for demand effects, we study whether this has been indeed the...

Persistent link: https://www.econbiz.de/10010746023

The causal effect of credit guarantees for SMEs: evidence from Italy

D'Ignazio, Alessio; Menon, Carlo - London School of Economics (LSE) - 2012

We evaluate the effectiveness of a partial credit guarantee program implemented in a large Italian region using unique microdata from a broad set of firms. Our results show that the policy was effective to the extent that it resulted in an improved financial condition for the beneficiary firms....

Persistent link: https://www.econbiz.de/10011126218

Relaxing credit constraints in emerging economies: the impact of public loans on the performance of Brazilian manufacturers

Lage de Sousa, Philip; Ottaviano, Gianmarco I. P. - London School of Economics (LSE) - 2014

Especially in developing countries credit constraints are often perceived as one of the most important market frictions constraining firm innovation and growth. Huge amounts of public money are being devoted to the removal of such constraints but their effectiveness is still subject to an...

Persistent link: https://www.econbiz.de/10011126540

Credit constraints and growth in a global economy

Jin, Keyu; Guibaud, Stéphane; Coeurdacier, Nicolas - London School of Economics (LSE) - 2011

We show that in an open-economy OLG model, the interaction between growth diﬀerentials and household credit constraints, more severe in fast-growing countries, can explain three prominent global trends: a divergence in private saving rates between advanced and emerging economies, large net...

Persistent link: https://www.econbiz.de/10011071411