The housing market-bank credit relationship: Some thoughts on its causality
The dominance of the orthodox paradigm over the last decades prior to the “great recession” left no room for the notion of “endogenous money” in the development of economic theory. However, this alternative direction of the causality of demand for money-credit and economic activity has been...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Economists' Association of Vojvodina
2014-01-01
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| Series: | Panoeconomicus |
| Subjects: | |
| Online Access: | http://www.doiserbia.nb.rs/img/doi/1452-595X/2014/1452-595X1402145A.pdf |
| _version_ | 1818333496977915904 |
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| author | Arestis Philip González Ana Rosa |
| author_facet | Arestis Philip González Ana Rosa |
| author_sort | Arestis Philip |
| collection | DOAJ |
| description | The dominance of the orthodox paradigm over the last decades prior to the
“great recession” left no room for the notion of “endogenous money” in the
development of economic theory. However, this alternative direction of the
causality of demand for money-credit and economic activity has been present
in the heterodox economic thought since the 1930s and should be reconsidered
in the current situation. In this context, the numerous episodes of housing
bubbles, which have been taking place since 2007, create the perfect
“environment” to explore the notion of “dynamic monetized production
economy”. Our theoretical framework is estimated econometrically by using a
sample of 6 developed economies which spans from 1970 to 2011. The
non-stationary “nature” of our data recommends the use of cointegration
techniques (Søren Johansen 1995) in order to estimate our models. |
| first_indexed | 2024-12-13T13:52:34Z |
| format | Article |
| id | doaj.art-df87e083171842b2971617ddefc05b38 |
| institution | Directory Open Access Journal |
| issn | 1452-595X 2217-2386 |
| language | English |
| last_indexed | 2024-12-13T13:52:34Z |
| publishDate | 2014-01-01 |
| publisher | Economists' Association of Vojvodina |
| record_format | Article |
| series | Panoeconomicus |
| spelling | doaj.art-df87e083171842b2971617ddefc05b382022-12-21T23:43:05ZengEconomists' Association of VojvodinaPanoeconomicus1452-595X2217-23862014-01-0161214516010.2298/PAN1402145A1452-595X1402145AThe housing market-bank credit relationship: Some thoughts on its causalityArestis Philip0González Ana Rosa1University of Cambridge, UK University of the Basque Country, SpainCambridge Econometrics, UKThe dominance of the orthodox paradigm over the last decades prior to the “great recession” left no room for the notion of “endogenous money” in the development of economic theory. However, this alternative direction of the causality of demand for money-credit and economic activity has been present in the heterodox economic thought since the 1930s and should be reconsidered in the current situation. In this context, the numerous episodes of housing bubbles, which have been taking place since 2007, create the perfect “environment” to explore the notion of “dynamic monetized production economy”. Our theoretical framework is estimated econometrically by using a sample of 6 developed economies which spans from 1970 to 2011. The non-stationary “nature” of our data recommends the use of cointegration techniques (Søren Johansen 1995) in order to estimate our models.http://www.doiserbia.nb.rs/img/doi/1452-595X/2014/1452-595X1402145A.pdfbank creditcollateral channelfinancial wealthhousing marketcointegration |
| spellingShingle | Arestis Philip González Ana Rosa The housing market-bank credit relationship: Some thoughts on its causality Panoeconomicus bank credit collateral channel financial wealth housing market cointegration |
| title | The housing market-bank credit relationship: Some thoughts on its causality |
| title_full | The housing market-bank credit relationship: Some thoughts on its causality |
| title_fullStr | The housing market-bank credit relationship: Some thoughts on its causality |
| title_full_unstemmed | The housing market-bank credit relationship: Some thoughts on its causality |
| title_short | The housing market-bank credit relationship: Some thoughts on its causality |
| title_sort | housing market bank credit relationship some thoughts on its causality |
| topic | bank credit collateral channel financial wealth housing market cointegration |
| url | http://www.doiserbia.nb.rs/img/doi/1452-595X/2014/1452-595X1402145A.pdf |
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