VoxEU column on Banking Integration in the EMU

In a new column on VoxEU entitled

Banking integration in the EMU — let’s get real

Mathias Hoffmann, Egor Masolv, Bent Sorensen and Iryna Stewen argue  that dependence on domestic banks reduces risk-sharing in a crisis, reducing GDP growth in affected country-sectors. Benefits from banking integration are only robust to global shocks if banking integration takes the form of cross-border lending to firms and households.

Globalization of Real Estate Network

Mathias Hoffmann is the Scientific Director of a new research network “Globalization of Real Estate Markets” (GREN) at the UZH Center for Urban and Real Estate Management. The objective of the network is to provide an international forum for economic research that examines how the forces of globalization shape housing markets around the world.   To this end, the network collects and aggregates data on international real estate markets and organizes academic conferences,  summer schools and policy events.

China’s role in the global financial crisis

On Nov 29th, I gave a public lecture on China’s role in the origins and the handling of the financial crisis as part of a lecture series commemorating the 10th anniversary of the global financial crisis.

Building on my research with Iryna Stewen and Yi Huang, I argue that global imbalances were an important factor in the run-up of the crisis. But the crisis was ultimately caused by U.S.specific factors (lax supervision, political pressure to increase home ownership, weak incentives for proper screening).

During the crisis, China reacted with a massive fiscal expansion. This contributed to stabilizing global demand but it also exacerbated the misallocation of capital within China.

The lecture slides are available here (password protected — send me an e-mail for access)