Real estate and the great crisis: Lessons for macro-prudential policy
Credit conditions have caused real estate booms and busts, owing to an under-pricing of credit risk aided by regulatory arbitrage and shadow financing. Across countries, real estate price and credit bubbles have reflected not only inelastic land supply and thin trading, but also the amplification of shocks via backward-looking price expectations and financing based on distorted prices. Macro-prudential lessons from the Great Crisis include preventing excess real estate financing and limiting the amplification and correlation of risks. Nonetheless, the costs and benefits of recent regulations require re-evaluation amid an on-going need to address correlated risks from shadow financing and securitization.
Date:
9 October 2017, 17:00 (Monday, 1st week, Michaelmas 2017)
Venue:
Balliol College, Broad Street OX1 3BJ
Venue Details:
Seminar Room 23
Speaker:
John Duca (Federal Reserve Bank of Dallas)
Organising department:
European Studies Centre
Organiser:
David Vines (Balliol College, University of Oxford)
Organiser contact email address:
david.vines@balliol.ox.ac.uk
Host:
David Vines (Balliol College, University of Oxford)
Part of:
Political Economy of Financial Markets (PEFM)
Booking required?:
Not required
Audience:
Public
Editor:
Julie Adams
