Tuesday, July 21, 2009
The Nutty Professor
Residential property is the single largest asset in people's everyday lives and its associated mortgage debt constitutes one of the biggest financial assets in most economies. Yet political economy largely ignores both. We know that the kind of housing people occupy and their level of debt affects their preferences for the level of public spending, taxation, and inflation. Housing is intimately tied to welfare systems and can be seen as a social right or as a means to acquire wealth over one's life. Housing systems are built from political struggles over the distribution of welfare and wealth. The organization and transformation of housing finance systems affects both national economies and international financial stability.