chapter  1
14 Pages

An Introduction to Economics

The need for a new edition of Economics and Property gained momentum from the financial crisis that began in the American housing market during 2007 and took hold across Europe and beyond during 2008 to 2010. This period of instability and economic decline is thrown into sharp relief by the relative calm and continual economic growth that had set the backdrop for the previous two editions (dating back to 1994). Furthermore, a recovery from this low point would require a different regulatory approach to the risks involved in funding commercial property development and residential mortgages; as property assets represent around 75% of the loans made on behalf of the world’s banks and financial institutions.