Reports
Published: 18 March 2015

Emerging Horizons in Real Estate

Policy-makers are currently debating whether asset-pricing dynamics can, or should, be managed in the public interest. This initiative delves into the mechanisms of asset pricing to learn how to detect when and why bubbles emerge and how consequences can be mitigated. In its 2nd year, the project will focus on effective and practicable mitigation solutions.Behavioural decision-making is key in understanding asset price dynamics, asset cycles and the linkages with the macro-economy. The most destructive cycles were those where asset prices, leverage and credit were intertwined causing the greatest systemic effects.Within the first project year, the initiative has already developed a strong brand by engaging leading experts, central bankers and business from the real estate, investors and financial services industries. At AM15, the Forum released two reports with recommendations and case studies, respectively. In 2015, we will develop actionable recommendations as well as facilitate high-level multi-stakeholder discussions about how consequences of asset bubbles can be limited through innovative solutions.

Policy-makers are currently debating whether asset-pricing dynamics can, or should, be managed in the public interest. This initiative delves into the mechanisms of asset pricing to learn how to detect when and why bubbles emerge and how consequences can be mitigated. In its 2nd year, the project will focus on effective and practicable mitigation solutions.Behavioural decision-making is key in understanding asset price dynamics, asset cycles and the linkages with the macro-economy. The most destructive cycles were those where asset prices, leverage and credit were intertwined causing the greatest systemic effects.Within the first project year, the initiative has already developed a strong brand by engaging leading experts, central bankers and business from the real estate, investors and financial services industries. At AM15, the Forum released two reports with recommendations and case studies, respectively. In 2015, we will develop actionable recommendations as well as facilitate high-level multi-stakeholder discussions about how consequences of asset bubbles can be limited through innovative solutions.

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