This results in nonlinearities that have far-reaching implications, including for the size of the fiscal multiplier and for the role of goods and labour markets to exit the ZLB. Housing Another important theme treated in the conference is housing and its relationship with global macroeconomic conditions.
The model used2 by Justiniano et al (2014) explains the U.S. house price boom that preceded the Great Financial Crisis as the consequence of looser lending conditions in the mortgage market. Looser lending conditions were the direct consequence of a variety of factors, in particular of the process of securitisation and the diffusion of market-based financial intermediation.