Canada: Selected Issues Paper
Electronic Access:
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Summary:
Canadian housing prices are higher than levels consistent with current fundamentals in some provinces. The empirical estimates suggest that a 10 percent decline in housing prices would lead to a 1¼ percent decline in private consumption. The high level of household leverage and housing prices could prove to be a source of vulnerability. The rebound in debt and housing prices after the crisis largely reflects the resilience of the financial system and the stronger economic recovery in Canada, as well as historically low interest rates.
Series:
Country Report No. 2011/365
Subject:
Balance of payments Banking Financial institutions Foreign direct investment Housing Housing prices Mortgages National accounts Prices Public debt Stocks
English
Publication Date:
December 22, 2011
ISBN/ISSN:
9781463929237/1934-7685
Stock No:
1CANEA2011002
Pages:
45
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