Bank of Canada on housing market volatility

Better access to global financial markets exacerbates the peaks and troughs of business cycles for the housing industry, research published by the Bank of Canada shows.

The paper, which uses a dynamic stochastic general equilibrium model for a small open economy to reach its conclusions, also finds that a rise in the loan-to-value ratio in the domestic mortgage markets leads to a greater amount of volatility.

To read the research, click here

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