Negative Interest Rates and Housing Bubbles

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F04274644%3A_____%2F16%3A%230000176" target="_blank" >RIV/04274644:_____/16:#0000176 - isvavai.cz</a>

Nalezeny alternativní kódy

RIV/68407700:21110/16:00306678

Výsledek na webu

<a href="http://www.civilengineeringjournal.cz/archive/issues/2016/2016_4/4-2016-0020.pdf" target="_blank" >http://www.civilengineeringjournal.cz/archive/issues/2016/2016_4/4-2016-0020.pdf</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.14311/CEJ.2016.04.0020" target="_blank" >10.14311/CEJ.2016.04.0020</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Negative Interest Rates and Housing Bubbles

Popis výsledku v původním jazyce

In years after the financial crisis economists started to propose negative interest rates as a way how to escape from a liquidity trap. Negative interest rate was considered to be impossible but few countries have already set them below the lower zero bound. However, it has been done only in the central banks but not in the commercial banks. The main thesis of this paper is that low interest rates can inflate a housing bubble and as a result negative interest rates would only inflate it more. First, proposals how to make interest rate negative even in commercial banking are presented in the paper. Then we discuss general consequences of negative interest rates such as redistribution, initiation of a business cycle and most importantly, inflation. Finally, we look at the housing market and present theoretical and some empirical evidence of a possible ongoing bubble. The theory suggests that the negative interest rate would inflate the bubble necessarily.

Název v anglickém jazyce

Negative Interest Rates and Housing Bubbles

Popis výsledku anglicky

In years after the financial crisis economists started to propose negative interest rates as a way how to escape from a liquidity trap. Negative interest rate was considered to be impossible but few countries have already set them below the lower zero bound. However, it has been done only in the central banks but not in the commercial banks. The main thesis of this paper is that low interest rates can inflate a housing bubble and as a result negative interest rates would only inflate it more. First, proposals how to make interest rate negative even in commercial banking are presented in the paper. Then we discuss general consequences of negative interest rates such as redistribution, initiation of a business cycle and most importantly, inflation. Finally, we look at the housing market and present theoretical and some empirical evidence of a possible ongoing bubble. The theory suggests that the negative interest rate would inflate the bubble necessarily.

Druh

J_x - Nezařazeno - Článek v odborném periodiku (Jimp, Jsc a Jost)

CEP obor

AH - Ekonomie

OECD FORD obor

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Projekt

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Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2016

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Civic Engineering Journal

ISSN

1805-2576

e-ISSN

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Svazek periodika

2016

Číslo periodika v rámci svazku

4

Stát vydavatele periodika

CZ - Česká republika

Počet stran výsledku

8

Strana od-do

1-8

Kód UT WoS článku

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EID výsledku v databázi Scopus

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