Recent Papers on the Current Crisis

Some interesting papers on housing and capital markets were presented at a Brookings seminar last week. The Hatzius, Case, and Caballero et al., papers are all particularly good.

Goldman Sachs’ Hatzius argues we could lose 1.80 percentage points of GDP growth this year and next. Case says we will see bigger real estate price declines than many are forecasting given the high number of foreclosed properties. Finally, Caballero et al., make an intriguing case for unexplored linkages between oil markets, subprime, and global capital imbalances.

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