Balancing Financial Stability and Housing Affordability: The Case of Canada

Balancing Financial Stability and Housing Affordability: The Case of Canada
Author: Mr.Troy D Matheson
Publisher: International Monetary Fund
Total Pages: 21
Release: 2019-08-02
Genre: Business & Economics
ISBN: 151351069X

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Housing market imbalances are a key source of systemic risk and can adversely affect housing affordability. This paper utilizes a stylized model of the Canadian economy that includes policymakers with differing objectives—macroeconomic stability, financial stability, and housing affordability. Not surprisingly, when faced with multiple objectives, deploying more policy instruments can lead to better outcomes. The results show that macroprudential policy can be more effective than policies based on adjusting propertytransfer taxes because property-tax policy entails excessive volatility in tax rates. They also show that if property-transfer taxes are used as a policy instrument, taxes targeted at a broader-set of homebuyers can be more effective than measures targeted at a smaller subset of homebuyers, such as nonresident homebuyers.

Balancing Financial Stability and Housing Affordability

Balancing Financial Stability and Housing Affordability
Author: Troy Matheson
Publisher:
Total Pages:
Release: 2018
Genre:
ISBN:

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Housing market imbalances are a key source of systemic risk and can adversely affect housing affordability. This paper utilizes a stylized model of the Canadian economy that includes policymakers with differing objectives—macroeconomic stability, financial stability, and housing affordability. Not surprisingly, when faced with multiple objectives,deploying more policy instruments can lead to better outcomes. The results show that macroprudential policy can be more effective than policies based on adjusting property-transfer taxes because property-tax policy entails excessive volatility in tax rates. They also show that if property-transfer taxes are used as a policy instrument, taxes targeted at a broader-set of home buyers can be more effective than measures targeted at a smaller subset of homebuyers, such as nonresident homebuyers.

Hot Property

Hot Property
Author: Rob Nijskens
Publisher: Springer
Total Pages: 220
Release: 2019-06-14
Genre: Business & Economics
ISBN: 3030116743

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This open access book discusses booming housing markets in cities around the globe, and the resulting challenges for policymakers and central banks. Cities are booming everywhere, leading to a growing demand for urban housing. In many cities this demand is out-pacing supply, which causes house prices to soar and increases the pressure on rental markets. These developments are posing major challenges for policymakers, central banks and other authorities responsible for ensuring financial stability, and economic well-being in general.This volume collects views from high-level policymakers and researchers, providing essential insights into these challenges, their impact on society, the economy and financial stability, and possible policy responses. The respective chapters address issues such as the popularity of cities, the question of a credit-fueled housing bubble, the role of housing supply frictions and potential policy solutions. Given its scope, the book offers a revealing read and valuable guide for everyone involved in practical policymaking for housing markets, mortgage credit and financial stability.

Homeownership Built to Last

Homeownership Built to Last
Author: Eric S. Belsky
Publisher: Brookings Institution Press
Total Pages: 497
Release: 2014-06-27
Genre: Business & Economics
ISBN: 0815725655

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A Brookings Institution Press and Harvard University Joint Center for Housing Studies publication The ups and downs in housing markets over the past two decades are without precedent, and the costs—financial, psychological, and social—have been enormous. Yet Americans overwhelmingly still aspire to homeownership, and many still view access to homeownership as an important ingredient for building wealth among historically disadvantaged groups. This timely volume reexamines the goals, risks, and rewards of homeownership in the wake of the housing bubble and subprime lending crisis. Housing, real estate, and finance experts explore the role of government in supporting homeownership, deliberate how homeownership can be made more sustainable, and discuss how best to balance affordability, access, and risk, particularly for minorities and low income families. Contributors: Eric S. Belsky (JCHS); Raphael W. Bostic (University of Southern California); Mark Calabria (Cato Institute); Kaloma Cardwell (University of California, Berkeley); Mark Cole (Hope LoanPort); J. Michael Collins (University of Wisconsin– Madison); Marsha J. Courchane (Charles River Associates); Andrew Davidson (Andrew Davidson and Co.); Christopher E. Herbert (JCHS); Leonard C. Kiefer (Freddie Mac); Alex Levin (Andrew Davidson and Co.); Adam J. Levitin (Georgetown University Law Center); Mark R. Lindblad (University of North Carolina at Chapel Hill); Jeffrey Lubell (Abt Associates); Patricia A. McCoy (University of Connecticut School of Law); Daniel T. McCue (JCHS); Jennifer H. Molinsky (JCHS); Stephanie Moulton (Ohio State University); john a. powell (University of California–Berkeley); Roberto G. Quercia (University of North Carolina at Chapel Hill); Janneke H. Ratcliffe (University of North Carolina); Carolina Reid (University of California–Berkeley); William M. Rohe (University of North Carolina at Chapel Hill); Rocio Sanchez-Moyano (JCHS); Susan Wachter (University of Pennsylvania); Peter M. Zorn (Freddie Mac)

Canada

Canada
Author: International Monetary Fund. Monetary and Capital Markets Department
Publisher: International Monetary Fund
Total Pages: 85
Release: 2019-06-24
Genre: Business & Economics
ISBN: 1498321119

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This Financial System Stability Assessment paper discusses that Canada has enjoyed favorable macroeconomic outcomes over the past decades, and its vibrant financial system continues to grow robustly. However, macrofinancial vulnerabilities—notably, elevated household debt and housing market imbalances—remain substantial, posing financial stability concerns. Various parts of the financial system are directly exposed to the housing market and/or linked through housing finance. The financial system would be able to manage severe macrofinancial shocks. Major deposit-taking institutions would remain resilient, but mortgage insurers would need additional capital in a severe adverse scenario. Housing finance is broadly resilient, notwithstanding some weaknesses in the small non-prime mortgage lending segment. Although banks’ overall capital buffers are adequate, additional required capital for mortgage exposures, along with measures to increase risk-based differentiation in mortgage pricing, would be desirable. This would help ensure adequate through-the cycle buffers, improve mortgage risk-pricing, and limit procyclical effects induced by housing market corrections.

Welfare Policy: Balancing Support and Sustainability

Welfare Policy: Balancing Support and Sustainability
Author: Talbot B. Kingston
Publisher: Book Lovers HQ
Total Pages: 195
Release: 2024-08-06
Genre: Political Science
ISBN:

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"Welfare Policy: Balancing Support and Sustainability" delves into the intricate world of welfare policy—where compassion meets practicality and support intertwines with sustainability. This comprehensive book offers an in-depth exploration of the principles, challenges, and future directions of welfare systems around the globe. What you will find in this book: Historical Perspectives: Embark on a journey to trace the evolution of welfare policies from their origins to modern-day implementations, gaining a profound understanding of the philosophical and ideological foundations that have shaped them. Economic Dimensions: Gain a comprehensive understanding of the financial aspects of welfare systems, including fiscal sustainability, cost-benefit analyses, and the impact of welfare policies on economic growth and labor markets. Political and Social Influences: Uncover the intricate web of political ideologies, public opinion, and social movements that influence welfare policy, as well as the critical role of advocacy groups and media representations in this dynamic landscape. Health and Welfare: Examine the intersection of healthcare and welfare, exploring universal health coverage, mental health, and integrating health and social services. Education and Welfare: Understand the crucial role of education in welfare policy, from early childhood programs to lifelong learning and vocational training. Housing and Welfare: Address the challenges of housing affordability, homelessness, and the impact of housing policies on economic stability and social cohesion. Employment and Welfare: Explore employment-related welfare policies, including unemployment benefits, workfare programs, and the future of work in the context of welfare. Family and Welfare: Learn about the various family support programs, including child welfare, elder care, and policies addressing domestic violence and family income support. Immigration and Welfare: Delve into the complex relationship between immigration and welfare, covering topics such as immigrant access to welfare programs and the economic contributions of immigrants. Innovations and Future Directions: Discover how technological advancements, data-driven approaches, and global cooperation can transform welfare policy and ensure its relevance and effectiveness in the future. "Welfare Policy: Balancing Support and Sustainability" is an essential read for policymakers, scholars, and anyone interested in understanding the multifaceted nature of welfare systems. This book challenges readers to think critically about the balance between providing immediate support and ensuring long-term sustainability, offering insights and solutions that are both compassionate and pragmatic. Uncover the complexities of welfare policy and join the conversation on creating equitable, sustainable, and effective welfare systems for the future.

A Fragile Balance

A Fragile Balance
Author: J. Collins
Publisher: Springer
Total Pages: 238
Release: 2015-03-11
Genre: Business & Economics
ISBN: 1137482370

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A Fragile Balance examines strategies to promote emergency savings, especially among underserved households. Each chapter is by an expert contributor and proposes an innovative financial product or service designed to bolster emergency savings among low-asset families. This collection also offers readers insights into the role of emergency savings and mechanisms to facilitate savings behaviors, and raises critical questions of the scale, institutional capacity, sustainability, accessibility, and effectiveness of existing programs.

Canada

Canada
Author: International Monetary Fund. Western Hemisphere Dept.
Publisher: International Monetary Fund
Total Pages: 86
Release: 2018-07-16
Genre: Business & Economics
ISBN: 1484368436

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Selected Issues

Macroprudential Policies and House Prices in Europe

Macroprudential Policies and House Prices in Europe
Author: Mr.Marco Arena
Publisher: International Monetary Fund
Total Pages: 51
Release: 2020-02-20
Genre: Business & Economics
ISBN: 1513512250

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Macroprudential policy in Europe aligns with the objective of limiting systemic risk, namely the risk of widespread disruption to the provision of financial services that is caused by an impairment of all or parts of the financial system and that can cause serious negative consequences for the real economy.