IMF research economist Prakash Loungani reports some statistics on the extent to which housing price declines are being seen worldwide.
The house price decline during 2008 has actually been more modest in the U.S. than in countries such as Denmark, New Zealand, the U.K., and Spain, though the price decline has been going on for much longer in the U.S. and it is the cumulative decline from the price peak that is the key determinant of the extent of mortgage defaults. Loungani notes from previous international and U.S. regional experience that the bigger the real estate price decline, the more severe the economic downturn we might expect.
The Wall Street Journal also has some neat interactive graphics on international movements in stock prices and exchange rates.
Originally published at Econbrowser on Oct 14, 2008 and reproduced here with the author’s permission.