Book contents
- Frontmatter
- Contents
- List of figures
- List of tables
- List of contributors
- Editors' acknowledgments
- 1 Introduction
- I The IMF, the World Bank, and neo-liberalism
- II Foreign direct investment, globalization, and neo-liberalism
- III Globalization of finance
- 6 Implications of globalization for macroeconomic theory and policy in developing countries
- Comment by Robert Blecker
- 7 Asia and the crisis of financial globalization
- Comment by Sule Ozler
- 8 Globalization and financial systems: policies for the new environment
- Comment by Ilene Grabel
- 9 Housing finance in the age of globalization: from social housing to life-cycle risk
- Comment by Jane D'Arista
- IV Trade, wages and the environment: North and South
- V Migration of people in a global economy
- VI Globalization and macroeconomic policy
- Bibliography
- Index
9 - Housing finance in the age of globalization: from social housing to life-cycle risk
Published online by Cambridge University Press: 04 August 2010
- Frontmatter
- Contents
- List of figures
- List of tables
- List of contributors
- Editors' acknowledgments
- 1 Introduction
- I The IMF, the World Bank, and neo-liberalism
- II Foreign direct investment, globalization, and neo-liberalism
- III Globalization of finance
- 6 Implications of globalization for macroeconomic theory and policy in developing countries
- Comment by Robert Blecker
- 7 Asia and the crisis of financial globalization
- Comment by Sule Ozler
- 8 Globalization and financial systems: policies for the new environment
- Comment by Ilene Grabel
- 9 Housing finance in the age of globalization: from social housing to life-cycle risk
- Comment by Jane D'Arista
- IV Trade, wages and the environment: North and South
- V Migration of people in a global economy
- VI Globalization and macroeconomic policy
- Bibliography
- Index
Summary
Everyone has the right to a standard of living adequate for the health and well-being of himself and his family, including food, clothing, housing, medical and necessary social services.
–Universal Declaration of Human Rights, Article 25:1Overview
Innovations have been remaking the U.S. system of housing finance over the past two decades. This revolution of privatization, securitization, risk shifting, and deregulation has not occurred in one country: globally, market-based mechanisms for supplying and financing housing are replacing government mechanisms. Is this revolution an inevitable result of financial integration? Does it mean that governments are withdrawing resources from housing finance and leaving housing to market forces? And will this financial transformation make housing finance systems more efficient? This paper investigates these questions by comparing the transformation in U.S. housing finance with concurrent changes in the United Kingdom, France, and Germany.
Other authors have argued that global financial integration is making housing finance systems more efficient by forcing the reduction of governmental subsidies, less risk bearing by lenders, and a higher relative price of housing credit. We come to very different conclusions here. First, global financial integration itself does not explain the marketization of housing finance in every country. Another aspect of globalization is driving this transformation – governments' global financial deregulation and their global retreat from supplying housing to needy households. National deregulation has affected the character of mortgage financing flows far more than has the actual or threatened movement of funds across borders.
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- Globalization and Progressive Economic Policy , pp. 219 - 239Publisher: Cambridge University PressPrint publication year: 1998
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