House Price Dynamics, Optimal LTV Limits and the Liquidity Trap.
This paper studies the optimal design of a macro-prudential instrument, a loan-to-value (LTV) limit, and its implications for monetary policy in a model with nominal rigidities and financial frictions. The analysis accounts for both an effective lower bound on the nominal interest rate and an upper...
| Publicado en: | Review of Economic Studies Vol. 91; no. 2; pp. 940 - 972 |
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| Autores principales: | , , |
| Formato: | Artículo |
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Oxford University Press / USA
Mar2024
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=175875931&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 175875931 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00346527 REM jtl: Review of Economic Studies issn: 00346527 maglogo: N pubinfo: dt: Mar2024 vid: 91 iid: 2 pid: 622 pub: Oxford University Press / USA artinfo: ui: 175875931 10.1093/restud/rdad040 ppf: 940 ppct: 32 formats: tig: atl: House Price Dynamics, Optimal LTV Limits and the Liquidity Trap. aug: au: Ferrero, Andrea Harrison, Richard Nelson, Benjamin affil: University of Oxford, CEPR and CfM Bank of England and CfM CfM su: Financial crises Home prices Interest rates Liquidity (Economics) Monetary policy sug: subj: Financial crises Financial Transactions Processing, Reserve, and Clearinghouse Activities Central credit unions Home prices Interest rates Liquidity (Economics) Monetary policy keyword: Financial crisis Monetary and macro-prudential policy Zero lower bound Financial crisis Monetary and macro-prudential policy Zero lower bound ab: This paper studies the optimal design of a macro-prudential instrument, a loan-to-value (LTV) limit, and its implications for monetary policy in a model with nominal rigidities and financial frictions. The analysis accounts for both an effective lower bound on the nominal interest rate and an upper bound on the ability of LTV limits to stimulate credit demand. The welfare-based loss function features a role for macro-prudential policy to enhance risk-sharing. Optimal LTV limits are strongly countercyclical. In a house price boom-bust episode, the active use of LTV limits alleviates debt-deleveraging dynamics and prevents the economy from falling into a liquidity trap. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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