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important paragraph
One of the best international studies of how house-price busts
can hurt economies has been done by the International Monetary
Fund. Analysing house prices in 14 countries during 1970-2001,
it identified 20 examples of “busts”, when real prices fell by almost
30% on average (the fall in nominal prices was smaller).
All but one of those housing busts led to a recession, with GDP
after three years falling to an average of 8% below its previous
growth trend.
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