Towards Understanding Macrofinancial Impacts of Loan†to†Value Ratio Policy in New Zealand: A General Equilibrium Perspective

Martin Fukač, Lucy Greig and Daniel Snethlage

Australian Economic Review, 2018, vol. 51, issue 1, 99-131

Abstract: We use a dynamic stochastic general equilibrium model as a framework for thinking about the transmission mechanism of loan†to†value macroprudential policy. We analyse the key channels through which the caps on loan†to†value ratios work to limit the speed of asset and credit cycles. We further analyse the mechanisms through which the caps support financial system resilience during asset price downturns that are of sufficient magnitude to cause financial and macroeconomic instability.

Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1111/1467-8462.12256

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:ausecr:v:51:y:2018:i:1:p:99-131

Ordering information: This journal article can be ordered from
https://ordering.onl ... 7-8462&ref=1467-8462

Access Statistics for this article

Australian Economic Review is currently edited by John de New, Viet Hoang Nguyen and Susan Méndez

More articles in Australian Economic Review from The University of Melbourne, Melbourne Institute of Applied Economic and Social Research Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().