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Safe as houses

New research by Oscar Jorda (UC Davis), Moritz Schularick (U. of Bonn) and Alan Taylor (UC Davis) featured in The Economist

The Economist this week features research by Òscar Jordà, Moritz Schularick and Alan Taylor. The authors document a striking increase in mortgage lending since WWII. Rising levels of mortgage debt are a better predictor of financial crises than surges in other forms of lending. Worse, financial crunches caused by mortgage binges result in deeper recessions and slower recoveries than episodes caused by other forms of debt. You can read the full article here.