The Consequences of Macroprudential Interventions in the German Property Market
IW-Trends
German Economic Institute (IW)
In the wake of the global financial crisis, the regulatory paradigm has shifted towards a stricter macroprudential supervision. In contrast to microprudential supervision prevailing so far, the focus has now shifted to include not only the solvency of individual credit institutions but also the stability of the financial system as a whole. As a result, property markets are increasingly attracting the attention of the financial supervisors. Macroprudential policy is currently being implemented in the form of discretionary interventions anticipating unsustainable developments in the real estate and credit markets. However, to reduce the risk of policy mistakes, it is important to conduct macroprudential policy rule-based. Moreover, if financial imbalances and asset price bubbles are to be identified, reliable data will be required.
Markus Demary / Heide Haas: Auswirkungen makroprudenzieller Eingriffe in den deutschen Immobilienmarkt
IW-Trends
German Economic Institute (IW)
Stablecoins and US national debt: Is a new financial market crisis looming?
Stablecoins are financial instruments which work similar to money market funds, and which invest in US government bonds. Stablecoins, however, issue cryptocurrencies instead of fund shares. Similar to the Eurodollar market in the 1960ies and the 1970ies are financial liabilities created, which are issued outside the US capital market.
IW
Debt-fuelled growth in China and local government indebtedness
The Chinese economy has experienced strong economic growth for more than four decades since the implementation of the Open Door Policy in 1978. The local governments of the Chinese provinces played a decisive role in implementing the ambitious development goals envisioned by the central government.
IW