- Copyright Page
- Central Banking’s Long March over the Decades
- Monetary Policy Committees and Voting Behavior
- Peaks and Troughs: Economics and Political Economy of Central Bank Independence Cycles
- The Governance of Central Banks: With Some Examples and Some Implications for All
- Can the Central Bank Alleviate Fiscal Burdens?
- The Impact of the Global Financial Crisis on Central Banking
- Strategies for Conducting Monetary Policy: A Critical Appraisal
- Central Bank Communication: How to Manage Expectations?
- Central Bank Communications: A Case Study
- Transparency of Monetary Policy in the Postcrisis World: Nergiz Dincer, Barry Eichengreen, and Petra Geraats
- Real Estate, Construction, Money, Credit, and Finance
- Inside the Bank Box: Evidence on Interest-Rate Pass-Through and Monetary Policy Transmission
- Term Premium Variability and Monetary Policy
- Open Market Operations
- Central Banking and Prudential Regulation: How the Wheel Turns
- Central Banks’ New Macroprudential Consensus
- Central Banks and the New Regulatory Regime for Banks
- Macroprudential Regulation of Banks and Financial Institutions
- Central Banking and Crisis Management from the Perspective of Austrian Business Cycle Theory
- The Changing Role of the Central Bank in Crisis Avoidance and Management
- Managing Macrofinancial Crises: The Role of the Central Bank
- Macromodeling, Default, and Money
- Model Uncertainty in Macroeconomics: On the Implications of Financial Frictions
- What Has Publishing Inflation Forecasts Accomplished? Central Banks and Their Competitors
Abstract and Keywords
This chapter examines the interactions between real estate markets on the one side and, on the other, interest rates, credit, and financial variables. A simple model is set up to analyze the key ideas, which will yield long run equilibrium values for the housing stock and the price of dwellings. It also shows the path that these variables will take toward the long run equilibrium, provided there are no further shocks, from any initial position of the housing stock. Next, the model is extended to explore complications. The chapter then turns to the recent historical record of the links between real estate and financial crises and to relevant policy issues.
Peter Sinclair is Emeritus Professor of Economics at the University of Birmingham.
Access to the complete content on Oxford Handbooks Online requires a subscription or purchase. Public users are able to search the site and view the abstracts and keywords for each book and chapter without a subscription.
If you have purchased a print title that contains an access token, please see the token for information about how to register your code.