Wednesday, May 28, 2014
House Prices in Finland
“(…) the level of overvaluation [in house prices in Finland] is lower than in other Nordic countries. However, the national average conceals rapid growth in prices in large metropolitan areas (…),” according to the IMF’s economic report on Finland.
More specifically, it says that “House prices have risen the fastest in metropolitan areas. The pace of house price growth has been pronounced in Helsinki and other highly developed areas despite the crisis, but less so in other regions, especially where there have been declines in manufacturing and industry. Similar dynamics are evident in the relative prices of smaller dwellings compared to larger properties or detached homes, underscoring the upward pressures on house prices in highly populated areas.” The report also talks about macroprudential policies, read the full report here.
“(…) the level of overvaluation [in house prices in Finland] is lower than in other Nordic countries. However, the national average conceals rapid growth in prices in large metropolitan areas (…),” according to the IMF’s economic report on Finland.
More specifically, it says that “House prices have risen the fastest in metropolitan areas. The pace of house price growth has been pronounced in Helsinki and other highly developed areas despite the crisis,
Posted by at 8:01 PM
Labels: Global Housing Watch
House Prices in Colombia
“House prices rose significantly in recent years, fuelled by a robust expansion of income and credit growth and government subsidies. If prices were to fall, banks’ non-performing loans could increase. However, the risk is mitigated by low households’ loan-to-value ratios (about 55 percent), fixed borrowing rates, and a low exposure of banks to mortgage loans. High growth in credit to the private sector, including consumer loans, has been a concern in recent years (IMF Country Report 13/35), but has been abating,” says IMF’s annual economic report on Colombia.
“House prices rose significantly in recent years, fuelled by a robust expansion of income and credit growth and government subsidies. If prices were to fall, banks’ non-performing loans could increase. However, the risk is mitigated by low households’ loan-to-value ratios (about 55 percent), fixed borrowing rates, and a low exposure of banks to mortgage loans. High growth in credit to the private sector, including consumer loans, has been a concern in recent years (IMF Country Report 13/35), but has been abating,”
Posted by at 4:25 PM
Labels: Global Housing Watch
Tuesday, May 27, 2014
The Science of Inequality
The Science Magazine has dedicated a special issue on the science of inequality, which features articles from the following authors: H. Pringle, A. Deaton, E. Pennisi, M. Ravallion, E. Marshall, T. Piketty and E. Saez, and others.
The Science Magazine has dedicated a special issue on the science of inequality, which features articles from the following authors: H. Pringle, A. Deaton, E. Pennisi, M. Ravallion, E. Marshall, T. Piketty and E. Saez, and others.
Posted by at 9:17 AM
Labels: Inclusive Growth
The IMF’s Andy Berg reviews Piketty
“This important and fascinating book surely ranks among the most influential economic analysis of recent decades. Much of the debate over inequality in recent years is the result of the work of Thomas Piketty and his fellow researchers.
Earlier research on inequality focused on data from household surveys described in terms of the “Gini” index, which measures the income distribution in a country. But the Gini misses much of the action at the top of the income distribution, partly because the very rich tend not to report all their income. And at best, these surveys measure income, not wealth.
Piketty has painstakingly drawn on new data sources to show that income inequality has risen sharply in recent decades to extremely high levels in the United States and, to a lesser extent, in a handful of other English-speaking countries. The rise has been driven mostly by wage inequality between the top 1 percent of the wealthiest in society, and everyone else. (I wish there had been room in this long book to address the critics who attribute these results to distortions in the data.)”
“This important and fascinating book surely ranks among the most influential economic analysis of recent decades. Much of the debate over inequality in recent years is the result of the work of Thomas Piketty and his fellow researchers.
Earlier research on inequality focused on data from household surveys described in terms of the “Gini” index, which measures the income distribution in a country. But the Gini misses much of the action at the top of the income distribution, Read the full article…
Posted by at 9:07 AM
Labels: Inclusive Growth
Saturday, May 24, 2014
House Prices in Hong Kong
“Property prices have increased some 300 percent from their trough in 2003. While prices have leveled off more recently, estimates from [IMF] staff models suggest they could be higher than suggested by fundamentals. (…) a disorderly correction, resulting from, for example, global market volatility or domestic shock, remains a key risk as an abrupt downturn in prices could trigger an adverse feedback loop between economic activity, bank lending, household balance sheets, and the property market.” says the new IMF’s economic report on Hong Kong.
“Property prices have increased some 300 percent from their trough in 2003. While prices have leveled off more recently, estimates from [IMF] staff models suggest they could be higher than suggested by fundamentals. (…) a disorderly correction, resulting from, for example, global market volatility or domestic shock, remains a key risk as an abrupt downturn in prices could trigger an adverse feedback loop between economic activity, bank lending, household balance sheets, and the property market.” says the new IMF’s economic report on Hong Kong.
Posted by at 1:18 PM
Labels: Global Housing Watch
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