Authors: José Manuel Pastor, Javier Quesada and Lorenzo Serrano

Title: The Impact of a Housing Price Bubble on the Intensity of the Recent Credit Crunch: Evidence from Different Countries

Source: New Issues in Financial and Credit Markets

Abstract: The authors find positive country evidence regarding the impact of the relative size of the housing sector on the intensity of the recent credit crunch period. Countries which experienced the highest housing price hikes are also countries where the credit deceleration has been more intensive. The size of housing loans relative to banks' portfolios, together with a much higher correspondent risk in the inter-bank markets, has probably been the main cause of the liquidity constraint over the last year.


Recommended citation:
Pastor, J.M., J. Quesada and L. Serrano, 2010. "The Impact of a Housing Price Bubble on the Intensity of the Recent Credit Crunch: Evidence from Different Countries", in New Issues in Financial and Credit Markets. Basingstoke, England: Palgrave Macmillan, pp. 64-81.


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