Whither Peripheral Financialisation? Housing Finance in Croatia since the Global Financial Crisis
Whither Peripheral Financialisation? Housing Finance in Croatia since the Global Financial Crisis
Author(s): Marek MikušSubject(s): Economic policy, Welfare systems, Rural and urban sociology, Financial Markets, Public Finances, Socio-Economic Research
Published by: AV ČR - Akademie věd České republiky - Sociologický ústav
Keywords: Croatia; Eastern Europe; household debt; housing finance; peripheral financialisation
Summary/Abstract: This article analyses recent developments in Croatian housing finance to update the established account of housing finance and peripheral financialisation in Eastern Europe that is based on the boom-bust cycle of the 2000s and early-to-mid 2010s. During the bust stage of that cycle, changes in regulation and in the behaviour of debtors and creditors resulted in deleveraging and a shift away from the risky and exploitative lending practices characteristic of peripheral housing finance. However, new increases in household debt and housing prices since 2016–17, coupled with the COVID-19 pandemic, seem to have reversed these trends. While a boom-bust cycle of similar scope and modality to the first one is unlikely to be repeated, peripheral forms of housing finance have persisted to some degree.
Journal: Critical Housing Analysis
- Issue Year: 9/2022
- Issue No: 1
- Page Range: 57-67
- Page Count: 11
- Language: English