Housing markets – a shelter from the storm or cause of the storm?

Housing markets have been in the centre of the recent financial turmoil and its consequences for the real economy. Although the problems began in the United States, lessons need to be learned on both sides of the Atlantic. Housing wealth plays a major role in Europe, too, although experiences vary a great deal from country to country. The roots of the excessive housing market developments may lie in the incentive structures of institutions and the innovative instruments they have devised, as well as in public policies such as tax subsidies. Not least, there is the question of what role housing wealth and mortgages should play in macro models and central bank and regulatory policies. The conference is aimed at contributing to the ongoing discussion of these important issues.