How can the risk from the mismatch between inflation rates in mortgage and labor markets be mitigated?
DOI:
https://doi.org/10.17230/ecos.2017.45.3Keywords:
Credit, mortgages, inflation, insurance, SwapAbstract
This paper proposes a financial instrument to mitigate the risk of a mismatch between inflation and wage variations that would affect the repayment of inflation-indexed mortgages in relatively high inflation economies, where housing finance is at an incipient phase of its development. In particular, using the Argentine experience in 2016-2017, and the empirical evidence of the two preceding decades, three swap/insurance options are proposed and simulated that would allow the debtors to limit their exposure to inflation.
Downloads
Download data is not yet available.
Downloads
Published
2017-12-13
Issue
Section
Articles
License
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
How to Cite
Grandes, M., & Galinsky, D. (2017). How can the risk from the mismatch between inflation rates in mortgage and labor markets be mitigated? Ecos de Economía, 21(45). https://doi.org/10.17230/ecos.2017.45.3
