Third, house prices, like any other asset prices being interest rate sensitive, affect transmission of monetary policy. Finally, boom and bust in house prices have implications for business cycles and hence financial stability. Historically, sharp increases in house prices have been followed by sharp declines after the price bubble bursts.
Global struggle to stabilize financial markets continues but has already changed the emerging financial landscape and has intensified exciting debates regarding the financial regulatory and supervisory architecture. The global scene has shaken confidence across economies and markets. Amidst all this, there are several reviews on how Asia fared and withstood the global financial shocks.