• Medientyp: Bericht; E-Book
  • Titel: Business cycle implications of mortgage spreads
  • Beteiligte: Walentin, Karl [Verfasser:in]
  • Erschienen: Stockholm: Sveriges Riksbank, 2014
  • Sprache: Englisch
  • Schlagwörter: Sources of business cycles ; R21 ; house prices ; E32 ; housing demand ; credit supply ; unconventional monetary policy ; E52 ; financial frictions ; E44 ; E21
  • Entstehung:
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  • Beschreibung: How do aggregate quantities at the business cycle frequency respond to shocks to the spread between residential mortgage rates and government bonds? Using a structural VAR approach, we .nd that mortgage spread shocks impact the real economy by both economically and statistically signi.cant magnitudes: a 100 basis point decline in the spread causes a peak increase in consumption, residential investment and GDP by 1.6 percent, 6.2 percent and 1.9 percent, respectively. These e¤ects are magni.ed when the policy rate is held .xed, as was the case in the US during the recent implementation of unconventional monetary policy.
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