EconPapers    
Economics at your fingertips  
 

Recovering from the housing and financial crisis

John Duca and David Luttrell

Economic Letter, 2010, vol. 5, issue jul, No 7

Abstract: The recent recession was unusual because it stemmed from an unsustainable easing of credit standards and financing, which fueled the prior expansion but also the imbalances that led to the worst recession since the 1930s. When losses on new financial practices ended excessive lending, the economy was hit by housing and credit shocks, culminating in a financial crisis. Home construction plunged, wealth fell, credit standards tightened and financial markets seized up. ; The initial impacts of these four shocks on gross domestic product (GDP) were amplified by cyclical interactions between income and spending. Since the second half of 2009, these negative shocks have been unwinding, setting the stage for economic recovery. An analysis of the shocks and their aftermath offers clues to the direction and pace of the recovery.

Keywords: Global financial crisis; Construction industry; Housing - Prices; Mortgage loans; Credit; Securities (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.dallasfed.org/assets/documents/research/eclett/2010/el1007.pdf (application/pdf)

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:fip:feddel:y:2010:i:jul:n:v.5no.7

Ordering information: This journal article can be ordered from

Access Statistics for this article

More articles in Economic Letter from Federal Reserve Bank of Dallas Contact information at EDIRC.
Bibliographic data for series maintained by Amy Chapman ().

 
Page updated 2019-10-19
Handle: RePEc:fip:feddel:y:2010:i:jul:n:v.5no.7