Asymmetries in Housing and Financial Market Institutions and EMU

  title={Asymmetries in Housing and Financial Market Institutions and EMU},
  author={Duncan Maclennan and J. N. J. Muellbauer and Mark Stephens},
  journal={Oxford Review of Economic Policy},
Despite convergence pressures, differences in housing and financial market institutions across the 15 member states of the European Union are still enormous. This paper argues that they have profound effects on the responsiveness of output and inflation in the different countries to changes in short-term interest rates, as well as to asset market shocks of external origin. The economic reasoning behind this claim is set out and the institutional differences are described. The paper assesses the… 

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