MANAGING HOUSING BUBBLES IN REGIONAL ECONOMIES UNDER EMU: IRELAND AND SPAIN

Thomas Conefrey and John Fitz Gerald
Additional contact information
John Fitz Gerald: The Economic and Social Research Institute (ESRI), Dublin, John.FitzGerald@esri.ie
Authors registered in the RePEc Author Service: John D. Fitzgerald ()

National Institute Economic Review, 2010, vol. 211, issue 1, 91-108

Abstract: With the advent of EMU, monetary policy can no longer be used to prevent housing market bubbles in regional economies such as Ireland or Spain. However, fiscal policy can and should be used to achieve the same effect. This paper shows that the advent of EMU relaxed existing financial constraints in Ireland and Spain, allowing a more rapid expansion of the housing stock in those countries to meet their specific demographic circumstances. However, the failure to prevent these booms turning into bubbles did lasting damage to the two economies, damage that could have been avoided by more appropriate fiscal policy action.

Keywords: Housing market; EMU; fiscal policy (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
http://ner.sagepub.com/content/211/1/91.abstract (text/html)

Related works:
Working Paper: Managing Housing Bubbles in Regional Economies Under EMU: Ireland and Spain (2010)
Working Paper: Managing Housing Bubbles in Regional Economies under EMU: Ireland and Spain (2009)
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:sae:niesru:v:211:y:2010:i:1:p:91-108

Access Statistics for this article

More articles in National Institute Economic Review from National Institute of Economic and Social Research Contact information at EDIRC.
Bibliographic data for series maintained by SAGE Publications ().