Rubio Sánchez, Margarita - 2009
The aim of this paper is twofold. First, I study how the proportion of fixed and variable-rate mortgages in an economy … in an economy with mostly variable-rate mortgages, an exogenous interest rate shock has larger effects on borrowers than …-price model. Furthermore, for given monetary policy, a high proportion of fixed-rate mortgages is welfare enhancing …