Securitization, housing market and banking sector behavior in a stock-flow consistent model

Arbeitspapier

This paper focuses on the different balance sheet management behavior of private banks and worker households, when assets are traded in the market. The authors take into consideration the securitization process, through which mortgage loans to households are converted into tradable securities which are held by investment banks in order to make profits. The demand for deposits by speculative households and realized capital gains on selling of mortgage-backed securities in the secondary market produce an inflation balloon in security markets, even though the authors apply the Basel III agreements to private banking behavior.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Economics Discussion Papers ; No. 2013-13

Classification and Topics

• Classification: Wirtschaft ; General Aggregative Models: Keynes; Keynesian; Post-Keynesian ; Portfolio Choice; Investment Decisions ; Financial Markets and the Macroeconomy
• Subject: securitization ; stock-flow consistent modelling ; active banking

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Fontana, Olimpia ; Godin, Antoine
• Event: Veröffentlichung
• (who): Kiel Institute for the World Economy (IfW)
• (where): Kiel
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/69512
• Last update: 10.03.2025, 11:43 AM CET