Balancing Financial Stability and Housing Affordability: The Case of Canada / Troy Matheson.

Format:

Book

Government document

Author/Creator:

Matheson, Troy.

Series:

IMF Working Papers; Working Paper ; No. 2018/237

IMF Working Papers

Language:

English

Physical Description:

1 online resource (22 pages)

Edition:

1st ed.

Place of Publication:

Washington, D.C. : International Monetary Fund, 2018.

Summary:

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.

Contents:

Intro

Cover

CONTENTS

ABSTRACT

I. INTRODUCTION

II. MODEL

III. DATA AND ESTIMATION

IV. POLICY OBJECTIVES

V. RESULTS

VI. SUMMARY AND CONCLUSION

TABLES

1. Calibrated Parameter

2. Estimated Parameters

3. Policy Option

4. Focus of Objectives

FIGURES

1. Model Fit: Estimated Standard Deviations

2. Optimal Policy Frontiers

3. Instrument Volatility

4. Tax Volatility and the Share of Savers.

Notes:

Description based on publisher supplied metadata and other sources.

ISBN:

9781513510699

151351069X

9781513510743

1513510746

OCLC:

1117632968