Future crises not likely to emanate from property market
Link between property and financial instability is weaker
Past experience, both in Ireland and abroad, clearly shows that substantial financial stability risks have emanated from property markets.
However, looking ahead, the link between property markets and financial instability will be somewhat weaker than in the past.
There are four reasons for this.
First, the experience of the crisis can itself be expected to lead to more cautious behaviour on the part of market players. We have seen substantial falls in both ...