New York Fed's Economic Policy Review, Dec 2004

The Federal Reserve Bank of New York's December 2004 edition of its Economic Policy Review includes the article, Are home prices the next "bubble"? It assesses two measures frequently cited to support a bubble - the rising price-to-income ratio and the declining rent-to-price ratio - and finds the measures to be flawed and the conclusions drawn from them unpersuasive.

In Are Home Prices the Next 'Bubble'? economists Jonathan McCarthy and Richard W. Peach maintain that the strength of market

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