| Description |
1 online resource (27 pages) : color illustrations |
| Series |
IMF country report ; no. 15/1 |
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IMF country report ; no. 15/1.
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| Contents |
Cover; CONTENTS; HOUSE-PRICE DECLINES IN DENMARK, IRELAND, THE NETHERLANDS, AND SPAIN; A. The House-Price Cycle; B. Macroeconomic Effects; BOXES; 1. How Do Developments Compare to Other Big House Price Declines?; 2. House Price Declines and Potential GDP; ADDRESSING THE LEGACY OF THE CRISIS; A. Macroeconomic Policies; B. Reducing Private-Sector Debt Overhang; 3. The Personal Insolvency Reforms in Ireland; 4. Codes for Borrower Protections in Ireland and Spain; C. Ensuring the Financial System is Able to Support Recovery; REDUCING RISKS FROM FUTURE HOUSE-PRICE CYCLES |
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A. Reducing Fiscal Incentives for Excessive DebtB. Making Rental Markets More Flexible; C. Using Macroprudential Tools to Avoid Excessive Debt; KEY CONCLUSIONS; REFERENCES; TABLE; 1. Taxes on Housing |
| Summary |
This report examines the experiences of four European countries that have had large house-price declines in recent years. In particular, it examines the experiences of Denmark, Ireland, the Netherlands, and Spain--four countries in which the house-price cycle has been especially large and that share a similar institutional environment (a common monetary policy and the EU's institutional framework)--with a view to exploring how policies can best support economic recovery in the wake of a house-price bust. The paper draws on and synthesizes related Selected Issues papers that are being or have been drafted as part of the 2014 Article IV consultations with these countries. These countries' experiences share similarities, but also important differences. Shocks to house prices, unemployment, and bank balance sheets were most severe in Ireland and Spain, reflecting in part a higher amplitude of residential construction. However, the boom- bust cycle has, together with other shocks, left all four countries facing significant output gaps, as well as elevated levels of private-sector debt that pose headwinds for growth. Promoting recovery following a house-price bust requires a multi-pronged strategy. Large house-price busts can leave countries facing wide output gaps, a highly indebted private sector, and weaker bank balance sheets. Addressing these problems simultaneously can be challenging, as efforts often involve trade-offs (e.g., faster deleveraging can widen output gaps). A careful and multi-pronged strategy is thus required to minimize trade-offs and accelerate sustainable recovery. Important progress has been made in this regard in all four countries |
| Notes |
"January 2015." |
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"November 25, 2014"--Page 2 of pdf |
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Authors: K. Fletcher, J. Andritzky, S. Denis, M. Hassine, R. Lama, P. Lopez-Murphy, M. Mrkaic, and K. Shirono |
| Bibliography |
Includes bibliographical references (page 25) |
| Notes |
Online resource; title from pdf title page (IMF Web site, viewed January 8, 2015) |
| Subject |
International Monetary Fund -- Denmark
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International Monetary Fund -- Ireland
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International Monetary Fund -- Netherlands
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International Monetary Fund -- Spain
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| SUBJECT |
International Monetary Fund fast |
| Subject |
Business cycles -- Denmark
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Business cycles -- Ireland
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Business cycles -- Netherlands
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Business cycles -- Spain
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Debt relief -- Denmark
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Debt relief -- Ireland
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Debt relief -- Netherlands
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Debt relief -- Spain
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Business cycles
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Debt relief
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Economic policy
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Housing -- Prices
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| SUBJECT |
Denmark -- Housing -- Prices
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Ireland -- Housing -- Prices
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Netherlands -- Housing -- Prices
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Spain -- Housing -- Prices
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Denmark -- Economic policy
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Ireland -- Economic policy
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Netherlands -- Economic policy
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Spain -- Economic policy
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| Subject |
Denmark
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Ireland
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Netherlands
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Spain
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| Form |
Electronic book
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| Author |
Fletcher, Kevin.
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|
International Monetary Fund.
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| ISBN |
9781498309325 |
|
1498309321 |
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