The politics of mortgage credit expansion in the small coordinated market economies

Karen M. Anderson, Paulette Kurzer

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

Recent contributions to the comparative political economy literature claim that liberal market economies are vulnerable to asset booms and busts because of financial deregulation, shrinking welfare states and a political ideology emphasising financial self-sufficiency. This article examines the rapid expansion of mortgage lending in three coordinated market economies (CMEs): Denmark, Sweden and the Netherlands. This expansion is puzzling given that all three countries are CMEs with generous welfare states. Yet the pattern of mortgage lending resembles the Anglo-Saxon or liberal market economies (LMEs) more than other CMEs. The article argues that mortgage bubbles in the small CMEs emerged as the unintended outcome of pairing neoliberal programmes to expand home ownership with collectivist housing institutions. This resulted in supply restrictions and rising property values which saddled households with extraordinarily high mortgage debts. In short, mortgage credit bubbles are not unique to Anglo-liberal welfare states and may have different origins.

Original languageEnglish (US)
JournalWest European Politics
DOIs
StatePublished - Jan 1 2019

Fingerprint

market economy
credit
politics
welfare state
lending
political ideology
self-sufficiency
deregulation
Denmark
indebtedness
political economy
Sweden
assets
Netherlands
housing
supply

Keywords

  • coordinated market economies
  • Denmark
  • Mortgage bubbles
  • Netherlands
  • residential capitalism
  • Sweden

ASJC Scopus subject areas

  • Political Science and International Relations

Cite this

The politics of mortgage credit expansion in the small coordinated market economies. / Anderson, Karen M.; Kurzer, Paulette.

In: West European Politics, 01.01.2019.

Research output: Contribution to journalArticle

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