Buckley, Karaguishiyeva,Van Order, and Vecvagare analyze the structure of approaches to mortgage credit risk that are now being used in a number of OECD and transition economies. The authors'basic approach is to show how option pricing models can help measure and evaluate the risks of various...

The role of monetary balances in economic growth has long been a topic of macroeconomic research. This paper examines the role of real money balances in an aggregate production function of a developing economy, Colombia. Colombia is an interesting case to analyze for several reasons. First,...

Designing a mortgage system which protects lenders' interests in an inflationary environment and provides continued accessiblity to credit for borrowers has been a challenge during the past decade. Approaches which addressed either the concerns of lenders (through indexation to inflation) or...