Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1455210803
Category : Business & Economics
Languages : en
Pages : 21
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Book Description
Sharp increase in house prices in Hong Kong SAR in 2009-2010 has led to concerns of an emerging real estate bubble. According to our measure of price deviation from fundamentals, which should be taken as an early warning indicator of market exuberance, the current level of house prices in Hong Kong SAR does not seem to be significantly higher than would be justified by underlying fundamentals. Moreover, unlike advanced economies before 2007-8, deviation from fundamentals has not been persistent in Hong Kong.Going forward, low interest rate and improving growth prospects, as well as a tight supply, particularly in the mass market, means that house price growth will continue to be strong.This is the period in which vulnerability may be accumulating, and tight prudential standards and fiscal measures will be required to tame price inflation.
Author: Mr.Ashvin Ahuja
Publisher: International Monetary Fund
ISBN: 1455210811
Category : Business & Economics
Languages : en
Pages : 33
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Book Description
Sharp increase in house prices combined with the extraordinary Chinese lending growth during 2009 has led to concerns of an emerging real estate bubble. We find that, for China as a whole, the current levels of house prices do not seem significantly higher than would be justified by underlying fundamentals. However, there are signs of overvaluation in some cities’ mass-market and luxury segments. Unlike advanced economies before 2007-8, prices have tended to correct frequently in China.Given persistently low real interest rates, lack of alternative investment and mortgage-to-GDP trend, rapid property price growth in China has, and will continue to have,a structural driver.
Author: Mr.R. Sean Craig
Publisher: International Monetary Fund
ISBN: 1463925948
Category : Business & Economics
Languages : en
Pages : 15
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Book Description
This paper uses an econometric model of residential property prices in Hong Kong SAR to assess the effectiveness of alternative policies in slowing the increase in property prices. The rapid rise in property prices is well explained by macroconomic fundamentals; real GDP per capital, real domestic credit, construction costs, land supply, and the real interest rate. Policy can influence the property market though land supply and prudential and tax policy, with the latter policies taking the form of a stamp duty on property transactions and a tighter loan-to-value ratio (LTV) on lending. Land supply is the most effective policy insturment for restraining property price increases but it operates with a significant lag. The LTV and stamp duty dampen speculative activity that drives up property prices. While these policies can slow the increase in the short run, they should be guided by their long run objectives of financial stability and counteracting speculation.
Author: International Monetary Fund. Asia and Pacific Dept
Publisher: International Monetary Fund
ISBN: 1498343791
Category : Business & Economics
Languages : en
Pages : 45
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Book Description
This 2014 Article IV Consultation highlights that Hong Kong Special Administrative Region’s (HKSAR) growth recovered to 2.9 percent in 2013 as resilient domestic demand helped offset the continued drag from net exports. As the global recovery takes hold, external demand is forecast to improve and lift growth to about 33⁄4 percent in 2014, although domestic demand remains solid. Inflation is expected to remain at about 4 percent, given the slow pass-through of housing costs. In line with the improved economic outlook, the 2014/15 budget includes a reduction in one-off measures of about 1.9 percent of GDP.
Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1455212679
Category : Business & Economics
Languages : en
Pages : 35
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Book Description
Owing to prompt policy action, the Hong Kong economy is now back on a robust growth trajectory. Inflation has rebounded, driven by higher costs for utilities. Banks have withstood the financial market volatility. Higher property prices leading to higher rents and the ongoing asset price inflation will feed into higher consumer prices. Financial stability using macroprudential tools and improving the overall fiscal position will help. Preserving the flexibility and adaptability of its economy will require a careful balancing act.
Author: George A. Akerlof
Publisher: MIT Press
ISBN: 0262529858
Category : Business & Economics
Languages : en
Pages : 369
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Book Description
Top economists consider how to conduct policy in a world where previous beliefs have been shattered by the recent financial and economic crises. Since 2008, economic policymakers and researchers have occupied a brave new economic world. Previous consensuses have been upended, former assumptions have been cast into doubt, and new approaches have yet to stand the test of time. Policymakers have been forced to improvise and researchers to rethink basic theory. George Akerlof, Nobel Laureate and one of this volume's editors, compares the crisis to a cat stuck in a tree, afraid to move. In April 2013, the International Monetary Fund brought together leading economists and economic policymakers to discuss the slowly emerging contours of the macroeconomic future. This book offers their combined insights. The editors and contributors—who include the Nobel Laureate and bestselling author Joseph Stiglitz, Federal Reserve Vice Chair Janet Yellen, and the former Governor of the Bank of Israel Stanley Fischer—consider the lessons learned from the crisis and its aftermath. They discuss, among other things, post-crisis questions about the traditional policy focus on inflation; macroprudential tools (which focus on the stability of the entire financial system rather than of individual firms) and their effectiveness; fiscal stimulus, public debt, and fiscal consolidation; and exchange rate arrangements.
Author: International Monetary
Publisher: International Monetary Fund
ISBN: 1513573284
Category : Business & Economics
Languages : en
Pages : 45
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Book Description
The institutional framework for Macroprudential Policies (MaPP) in the Hong Kong Special Administrative Region (the Hong Kong SAR) is well established. According to the Basic Law, the Government of the Hong Kong SAR shall on its own formulate monetary and financial policies. The Financial Secretary (FS) and the Secretary for Financial Services and the Treasury (SFST) are responsible for policies for maintaining the stability and integrity of the financial system of the Hong Kong SAR. The Hong Kong SAR has a sector-based regulatory structure and the responsibilities and tools for safeguarding financial stability are spread across the Financial Services and the Treasury Bureau (FSTB) and three regulators (namely, the Hong Kong Monetary Authority (HKMA), Securities and Futures Commission (SFC) and Insurance Authority (IA)). There are good and well-structured interagency coordination and consultation mechanisms, through the Council of Financial Regulators (CFR) and the Financial Stability Committee (FSC), chaired by the FS and the SFST, respectively. Broad coordination between the CFR and government agencies on taxation and housing supply-side policies has also worked well. MaPP and risk assessment are communicated to the public openly and frequently through speeches, press releases and regular publications, including the Half-Yearly Monetary and Financial Stability Report of the HKMA and the Half-yearly Review Report of the Global and Local Securities Markets of the SFC.
Author: International Monetary Fund. Asia and Pacific Dept
Publisher: International Monetary Fund
ISBN: 1589066413
Category : Business & Economics
Languages : en
Pages : 89
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Book Description
The recent economic and financial developments and trends in Asia and the Pacific are examined in this latest REO, including issues related to Asia’s trade performance, notably in the high-tech sector, and the February-March bout of turbulence in the region’s financial markets. The near-term outlook, key risks, and their related policy challenges are analyzed throughout, as well as in special chapters that look more closely at the evolving nature of capital inflows, housing market developments, and the impact of commodity price booms on lower-income economies.
Author: Anthony Pecotich
Publisher: Routledge
ISBN: 1315498758
Category : Business & Economics
Languages : en
Pages : 915
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Book Description
East and Southeast Asia is a vast and complex region. Its countries have a bewildering array of histories, demographics, economic structures, cultural backgrounds, and global marketing potential. This Handbook unravels the mystery. Each chapter is written by a country specialist and provides a thorough and up-to-date analysis of one of the ESEA countries. Each author follows a consistent model and covers geography and natural resources, the political system, the economic system, the social system, and the marketing environment. Complete chapters are devoted to: Australia, Brunei, Cambodia, China and Hong Kong, East Timor, Indonesia, Japan, Korea (North and South), Laos, Malaysia, Myanmar, New Zealand, Papua New Guinea, the Philippines, Singapore, Taiwan, Thailand, and Vietnam. Not just a review of current conditions, the Handbook offers prognoses for future marketing and commercial activity in each country. This definitive resource is generously illustrated with maps, figures, and tables, and includes comprehensive references and source materials for each country. It is an essential reference for students, researchers, and practitioners in the global economy.
Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1498342604
Category : Business & Economics
Languages : en
Pages : 129
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Book Description
This note covers considerations that can guide the staff’s policy advice on the use of a broad range of macroprudential tools. It discusses the transmission and likely effectiveness of these tools in mitigating systemic risks and the set of indicators that can be used in surveillance to assess the need for changes in macroprudential policy settings. This note is a supplement to the Staff Guidance Note on Macroprudential Policy.
