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.
Thursday 4 June
8:45–9:00 | Registration | |
9.00–10:15 | Welcome, Opening Address and Keynote Address I | |
Chair | Jouko Vilmunen, Head of Research, Bank of Finland | |
Welcome
Catherine Lubochinsky, SUERF President and Professor of Economics, Université Paris 2
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Sinikka Salo, Member of the Board, Bank of Finland
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9:30–10:15 |
Central bank policy and asset prices
Loretta J. Mester, Senior Vice President and Director of Research, Federal Reserve Bank of Philadelphia
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10:15–11:00 | Coffee break | |
11:00–12:30 | Session 1: House prices and credit constraints | |
Chair | Iftekhar Hasan, Rensselaer Polytechnic Institute, Bank of Finland and Journal of Financial Stability | |
Credit constraints and house prices: making sense of the U.S. experience | ||
Author(s) |
John V. Duca, Federal Reserve Bank of Dallas
John Muellbauer, Oxford University
*Anthony Murphy, Oxford University
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Comments | Peter Englund, Stockholm School of Economics | |
On the importance of borrowing constraints for house price dynamics | ||
Author(s) |
*Essi Eerola, Government Institute for Economic Research
Niku Määttänen, The Research Institute of the Finnish Economy
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Comments | Gerald Dwyer, Federal Reserve Bank of Atlanta | |
12:30–14:00 | Lunch | |
14:00–15:30 | Session 2: Mortgage decisions | |
Chair | Esa Jokivuolle, Bank of Finland and SUERF | |
Where's the smoking gun? A study of underwriting standards for US subprime mortgages | ||
Author(s) |
Geetesh Bhardwaj, The Vanguard Group
*Rajdeep Sengupta, Federal Reserve Bank of St. Louis
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Comments | Rhiannon Sowerbutts, Universidad Pompeu Fabra | |
Do financial counseling mandates improve mortgage choice and performance? Evidence from a Legislative Experiment | ||
Author(s) |
Sumit Agarwal, Federal Reserve Bank of Chicago
Gene Amromin, Federal Reserve Bank of Chicago
Itzhak Ben-David, Ohio State University
Souphala Chomsisengphet, Office of the Comptroller of the Currency
Douglas D. Evanoff, Federal Reserve Bank of Chicago
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Comments | Anthony Murphy | |
15:30–16:00 | Coffee break | |
16:00–17:30 | Panel session: Political economy of housing markets | |
Chair
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Professor Heikki Loikkanen, University of Helsinki | |
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Panelists:
Raymond Duch, Oxford University
Peter Englund, Stockholm School of Economics
Yannis Ioannides, Tufts University
Risto Murto, Varma Mutual Pension Insurance Company
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17:30 | End of first day's programme | |
19:00 | Dinner at the Bank of Finland's Banqueting Hall |
Friday 5 June
9:00–10:30 | Invited Speech and Session 3: House prices and housing loans | |
Chair | Juan Ayuso, Banco de España and SUERF | |
Invited Speech Presentation | The residential boom and its consequences: a view from a Spanish bank Antonio Cortina, Deputy Head of Research, Banco Santander |
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Paper Presentation | The interaction between house prices and loans for house purchase. The Spanish case | |
Author(s) | Ricardo Gimeno, Banco de España *Carmen Martínez Carrascal, Banco de España |
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Comments | Niku Määttänen | |
10:30–11:00 | Coffee break | |
11:00–12:30 | Session 4: Monetary policy and house prices | |
Chair | Antti Ripatti, Bank of Finland | |
Paper Presentation | Monetary policy and housing prices in an estimated DSGE for the US and the euro area | |
Author(s) | *Alessandro Notarpietro, Università Bocconi and Banca d'Italia Matthieu Darracq Pariès, European Central Bank | |
Comments | Juha Kilponen, Bank of Finland | |
Paper Presentation | The housing price boom of the late nineties: did inflation targeting matter? | |
Author(s) | Sébastien Frappa, Banque de France *Jean-Stéphane Mésonnier, Banque de France | |
Comments | Livio Stracca, European Central Bank | |
12:30–14:00 | Lunch | |
14:00–15:30 | Invited Speech and Keynote Address II | |
Chair | Jouko Vilmunen | |
14:00–14:45 | Invited Speech Presentation | ECB structural issues report 2009: Housing finance in the Euro area Guido Wolswijk, European Central Bank |
14:45–15:30 | Keynote Address II | Housing markets and the financial crisis of 2007–2008: lessons for the future John V. Duca, Vice President and Senior Policy Advisor, Federal Reserve Bank of Dallas |
15:30–15:40 | Concluding remarks Jouko Vilmunen | |
15:40 | End of the conference | |
17:00 | Informal cruise to the Bank of Finland's Villa with a dinner at destination |