Contributions

  • National Bureau of Economic Research. - Contributor

Publication

2007 - National Bureau of Economic Research, Cambridge, Mass, Massachusetts

Language

English

Word Count

2,750 words, Guess

Page Count

11 pages

Identifiers

Classifications

  • LCCHB1

Description

The housing sector is now (September 2007) at the root of three distinct but related problems: (1) a sharp decline in house prices and the related fall in home building; (2) a subprime mortgage problem that has triggered a substantial widening of all credit spreads and the freezing of much of the credit markets; and (3) a decline in home equity loans and mortgage refinancing that could cause greater declines in consumer spending. Each of these could by itself be powerful enough to cause an economic downturn. The combination could cause a very serious recession unless there are other offsetting forces. In this paper, I discuss each of these and then comment on the implications for monetary policy.

Subjects

Topics

FinanceHistoryHousingEconomic conditionsUnited States -- Economic conditions -- 21st centuryHousing -- United States -- Finance -- History -- 21st century

Places

Times

Series Statement

  • NBER working paper series -- no. 13471.
  • Working paper series (National Bureau of Economic Research) -- working paper no. 13471.

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