by Michael Hatcher Empirical evidence shows that house price busts are less frequent than equity price busts, but last about twice as long, with severe consequences for the macroeconomy. In a typical house price bust, the economy loses around 10% of GDP, with both consumption and investment taking a hit. It is not surprising, therefore, that housing and the macroeconomy is high on policymakers’ agenda.In my Rebuilding Macroeconomics project I have developed a joint model for understanding h...| Rebuild Macro