IMF paper suggests looser monetary policy to offset eurozone macro-pru policies

housing6
Denmark, Ireland, the Netherlands and Spain all experienced big house-price declines

Macro-prudential polices in four European countries that have seen sharp declines in house prices should be introduced gradually and offset by looser monetary policy to avoid their contractionary impact, according to a new International Monetary Fund (IMF) staff paper.

It also suggests restricting banks' ability to pay dividends to ensure they are able to absorb losses and write down non-performing debt.

The staff paper, published today, examines the housing markets in Denmark, Ireland, the Neth

To continue reading...

You must be signed in to use this feature.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: