Wednesday, May 7, 2014
In Asia, macroprudential policies related to the housing sector has been the most effective. They have reduced house price inflation by two percentage points after one quarter. Moreover, “housing-related macroprudential instruments have had an impact—particularly caps on loan-to-value ratios and the taxation of housing transactions. In particular, such instruments have helped lower credit growth, slow house price inﬂation, and dampen bank leverage in Asia (although the latter effect is quite small),” says a new IMF study on Macroprudential Policy and Capital Flow Measures in Asia: Use and Effectiveness.
Subscribe to: Posts
Copyright Unassuming Economist 2016