Description

This paper analyses the characteristics and functioning of real estate markets. It focuses on the relationship between developments in these markets and the financial sector to determine under what circumstances real estate booms and busts can develop and how they can affect the health and stability of the financial system. It concludes that unbalanced real estate price developments often contribute to financial sector distress and that trends in real estate markets should be monitored closely in the context of financial sector assessments.

Taxonomy

Financial crisis , International financial system

More publications in this series: Working Papers

More publications by: Paul Louis Ceriel Hilbers ; Lisbeth Zacho ; Qin Lei