future house prices which, in turn, led to a collapse in lending standards. A common feature of all bubbles which complicates … economic fallout from the recent financial crisis, central bank views on the use of monetary policy to lean against bubbles …

Housing bubbles and crashes are catastrophic events for economies, implying enormous destruction of housing wealth … housing policies can affect economies’ propensity to build up speculative house price bubbles. Specifically, we focus on the … series from 16 countries since 1870, we identify speculative price bubbles through explosive root tests, corroborated by a …

We describe a rational expectations model in which speculative bubbles in house prices can emerge. Within this model … prices in US cities were driven by speculative bubbles over the period 2000-2008. We find that IOs were used sparingly in … with our model, this evidence suggests that speculative bubbles were an important factor driving prices in cities with boom …