The first question is important to identify the possible shortcomings in the design of monetary union that need to be corrected to avoid future crises.
However, in other markets, converting REO properties to rentals may not be in the narrow best interest of financial institutions or mortgage investors but may be in the best interest of local communities. For these markets, it may be useful to consider the possible role of new incentives and, if so, what form those incentives might take.