Who saw?

[Andrew Boughton]

A paper made available to Steve Keen's colleagues in 2004. Real Estate, Banking & Business Cycles


Recently KPMG released its 1994 Financial Institutions Performance Survey with controversial commentary on how high volumes of loans for housing and property development can stifle lending to other sectors.

Now we compound our sins by arguing that major economic cycles are primarily caused by property cycles, a subject on which very little economic analysis has been conducted. We offer insights into portfolio management, credit risk management and loan performance through a more detailed understanding of business cycles.