Balancing Financial Stability and Housing Affordability : The Case of Canada /

Housing market imbalances are a key source of systemic risk and can adversely affect housing affordability. This paper utilizes a stylized model of the Canadian economy that includes policymakers with differing objectives-macroeconomic stability, financial stability, and housing affordability. Not s...

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Κύριος συγγραφέας: Matheson, Troy
Μορφή: Επιστημονικό περιοδικό
Γλώσσα:English
Έκδοση: Washington, D.C. : International Monetary Fund, 2018.
Σειρά:IMF Working Papers; Working Paper ; No. 2018/237
Διαθέσιμο Online:Full text available on IMF
Περιγραφή
Περίληψη:Housing market imbalances are a key source of systemic risk and can adversely affect housing affordability. This paper utilizes a stylized model of the Canadian economy that includes policymakers with differing objectives-macroeconomic stability, financial stability, and housing affordability. Not surprisingly, when faced with multiple objectives, deploying more policy instruments can lead to better outcomes. The results show that macroprudential policy can be more effective than policies based on adjusting propertytransfer taxes because property-tax policy entails excessive volatility in tax rates. They also show that if property-transfer taxes are used as a policy instrument, taxes targeted at a broader-set of homebuyers can be more effective than measures targeted at a smaller subset of homebuyers, such as nonresident homebuyers.
Περιγραφή τεκμηρίου:<strong>Off-Campus Access:</strong> No User ID or Password Required
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Φυσική περιγραφή:1 online resource (21 pages)
Μορφή:Mode of access: Internet
ISSN:1018-5941
Πρόσβαση:Electronic access restricted to authorized BRAC University faculty, staff and students