Managing Housing Bubbles in Regional Economies Under EMU: Ireland and Spain

Conefrey, Thomas; Gerald, John Fitz

doi:10.1177/0027950110364103

Cited by 47 publications

(47 citation statements)

References 13 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Through the 1990s and early 2000s, with incomes growing, new lenders entered Ireland's deregulated banking sector. From 1999, the adoption of the Euro reduced the banks' wholesale funding costs; Irish households leveraged hard into property, including new housing construction and housing for private rental (Conefrey and Fitz Gerald 2010).…”

Section: Irelandmentioning

confidence: 99%

“…Reliance on retail deposits, traditionally the key source of funding for mortgage lending, was replaced in large part by borrowing from the wholesale money markets and from debt securities (Conefrey and Fitzgerald 2010). Real estate related lending increased significantly and reached a peak of 72 per cent in 2006 of total lending by Irish mortgage lenders (Norris and Coates, 2014).…”

Section: Financial Settings 221 Creditmentioning

confidence: 99%

See 1 more Smart Citation

The changing institutions of private rental housing: an international review

Martin¹,

Hulse²,

Pawson³

2018

AHURI Final Report

View full text Add to dashboard Cite

Related reports and documents AHURIAHURI is a national independent research network with an expert not-for-profit research management company, AHURI Limited, at its centre.AHURI's mission is to deliver high quality research that influences policy development and practice change to improve the housing and urban environments of all Australians.Using high quality, independent evidence and through active, managed engagement, AHURI works to inform the policies and practices of governments and the housing and urban development industries, and stimulate debate in the broader Australian community.AHURI undertakes evidence-based policy development on a range of priority policy topics that are of interest to our audience groups, including housing and labour markets, urban growth and renewal, planning and infrastructure development, housing supply and affordability, homelessness, economic productivity, and social cohesion and wellbeing.

show abstract

Section: Irelandmentioning

confidence: 99%

Section: Financial Settings 221 Creditmentioning

confidence: 99%

The changing institutions of private rental housing: an international review

Martin¹,

Hulse²,

Pawson³

2018

AHURI Final Report

View full text Add to dashboard Cite

show abstract

“…These policies had the effect of facilitating the radical credit growth outlined in the opening sections of this paper and by extension asset price Keynesianism, but clarifying the extent to which these reforms were deliberately designed for this purpose is (Conefrey and Fitz Gerald, 2010;Observatorio Metropolitano, 2012). EMU also resulted in low and predictable interest rates across the Eurozone which encouraged increased borrowing in countries including Ireland and Spain where mortgage interest rates had historically been high and volatile while at the same time national central banks lost control over interest rates which might have helped to control housing demand (Carballo-Cruz 2011;…”

Section: Bank Regulation and Financementioning

confidence: 90%

“…The proximate causes of these developments have been explored in-depth by researchers, governments and the international agencies responsible for devising and monitoring the 'bail outs' (e.g., Honohan, 2010;Regling and Watson, 2010;Norris andCoates, 2014, López andRodríguez, 2011 among many others) and these sources have highlighted strong parallels between the various policy, regulatory and economic factors which underpinned the Irish and Spanish housing booms and busts (Conefrey and Fitz Gerald, 2010;International Monetary Fund, 2015). In common with many developed countries, residential property price inflation in Ireland and Spain increased dramatically from the late 1990s but, more unusually, this was accompanied by a very large increase in new house building.…”

Section: Introductionmentioning

confidence: 99%

Asset Price Keynesianism, Regional Imbalances and the Irish and Spanish Housing Booms and Busts

Norris¹,

Byrne²

2015

Built Eviron

View full text Add to dashboard Cite

Ireland and Spain were amongst the European countries which experienced the most severe economic and fiscal problems following the global financial crisis. The proximate causes of these economic crashes have been explored in-depth by researchers and governments, who have highlighted strong parallels between the policy, regulatory and economic factors which underpinned them. In both countries residential property price inflation increased dramatically from the late 1990s driven by increased availability of cheap mortgages but unusually was accompanied by marked growth in new house building. Thus, following the international credit crunch in 2008, a simultaneous contraction in both mortgage credit and house building occurred in Ireland and Spain, which precipitated a marked knock-on decline in the employment, tax revenue and consumer spending which the housing boom had underpinned. This paper argues that the Irish and Spanish housing booms and busts are similar not just in terms of scale and proximate causes but also in terms of fundamental causes. In both countries the housing boom/bust cycle was underpinned by a suite of macroeconomic policies which aimed to use asset price growth to underpin rising demand and economic growth, or in other words achieve what Robert Brenner (2006) terms 'asset-price Keynesianism'. This approach was particularly attractive to the Irish and Spanish governments because it enabled them to resolve historical legacies of industrial underdevelopment and regional imbalances by generating construction jobs in underdeveloped areas. As a result of the latter, local/regional governments in both countries played a key role in facilitating the implementation of this policy.2 Introduction:

show abstract

“…According to Leamer (2007) fluctuations in the housing market activity are the core cause of the business cycle, whereas the data on residential investment can be successfully used as an early warning sign of an oncoming recession. In the context of European monetary integration, the high importance of the housing market, which was well described before the launching the euro by Maclennan et al (1998), has manifested in the form of substantial imbalances and painful adjustment in Spain and Ireland (Conefrey and Gerald, 2010). There are also numerous analyses on the importance of the housing market structure and its dynamics for the transmission of macroeconomic disturbances to the economy, which follow the seminar paper of Iacoviello (2005).…”

Section: Introductionmentioning

confidence: 99%