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HOUSING AND HOUSING FINANCE IN AN ERA OF INFLATION AND DISINFLATION: INTRODUCTION
Author(s) -
WEICHER JOHN C.
Publication year - 1984
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/j.1465-7287.1984.tb00779.x
Subject(s) - disinflation , economics , boom , inflation (cosmology) , monetary economics , interest rate , monetary policy , macroeconomics , keynesian economics , physics , environmental engineering , theoretical physics , engineering
So far, the 1980s have been the decade of disinflation in the housing market. The United States has experienced four remarkable years during which house prices have declined in real terms, and, at least in some markets, in nominal terms as well. At the same time, mortgage interest rates have risen to unprecedented levels, and the housing finance system has experienced extraordinary stresses, which are contributing to a remarkably rapid process of fundamental structural change. This comes immediately after a 15‐year period of variable, but persistent and accelerating inflation, culminating in a speculative housing boom from 1977 to 1979.