Housing markets are a key influence on credit price cycles, a working paper published by the European Central Bank argues.

In Business, housing and credit cycles, Gerhard Rünstler and Marente Vlekke attempt to see whether the three different types of cycle move together.

The authors present multivariate unobserved components models that estimate trend and cyclical components in GDP, credit volumes and house prices for the US and the five largest European economies. Except for Germany, all the