This paper examines the relation between money and housing variables in the euro area and in the US. Our empirical model is based on a standard money demand relation which is augmented by housing market variables. In doing so, co-integrated money demand relationships can be established for both...

The U.S. residential housing market collapse illustrates the consequences of ignoring risk while funding mortgage borrowing. Collateral over-valuation was a foundational piece of the crisis. Over the past few decades, secondary markets, securitization, policy and psychology increased the flow of...

This paper examines the house price boom that occurred simultaneously in the United States and in a number of European countries in 2003 to 2007. In the United States, Spain, Ireland, the UK, the Netherlands, and Denmark, a house price boom peaked in 2007 and, in each case, was accompanied by a...

Beginning in mid-2007, the worldwide monetary emergency immediately transformed from the bursting of the housing bubble rise in the US to the most noticeably awful recession the world has seen for more than six decades. Through a top to bottom survey of the emergency regarding the causes,...

Housing finance, and, specifically, the subprime private label securitisation market in the US, was at the epicentre of the global financial crisis. Excessive debt expansion in the run-up to the crisis resulted in credit risk, under-identified and mispriced ex ante, and in systemic risk. This...

This paper examines the relation between money and housing variables in the euro area and in the US. Our empirical model is based on a standard money demand relation which is augmented by housing market variables. In doing so, co-integrated money demand relationships can be established for both...