“Macro Policies in Turbulent Times” – #KKG107 takes a closer look at key issues in monetary and fiscal affairs. Macroeconomically, the recent years have been turbulent times indeed. Both the pandemic as well as the energy crisis brought about new challenges for monetary and fiscal...

We evaluate the impact of loan-to-value restrictions on household financial vulnerability. Using Norwegian tax data, we first document a beneficial leverage effect, in which households respond to the regulation by reducing house purchase probabilities, debt and interest expenses. Second, we...