International capital flows and expectation-driven boom-bust cycles in the housing market

摘要: Abstract This paper analyzes the roles of credit market conditions in endogenous formation housing-market boom–bust cycles a business cycle model. When households are uncertain about duration temporary high income growth period, expected future house prices rise during period and fall at end period. But this development causes expectation-driven current only if economy is open to international capital flows. It also shown that maximum loan-to-value ratios for residential mortgages per se do not cause without flows