The Politics of Capital Gains: Building an Asset-Based Society in New Zealand
Examining changes in varieties of residential capitalism is important for understanding broader changes in financial behavior, which can have a significant impact on individuals’ political choices as well as a country’s economic performance. In addition, when domestic property bubbles burst this can generate severe consequences for the stability of the international financial system, as became evident when the end of excessive real estate speculation in several East Asian economies contributed to the Asian financial crisis in 1997–8 (Sheng and Kirinpanu, 2000) and as we have seen with the recent subprime crisis (Renaud and Kim, 2007, 9–11). In short, changes in different countries’ systems of residential capitalism can engender far-reaching political effects at the national level and the international level, as well as at the more immediate level of people’s everyday lives.
KeywordsInterest Rate House Price Housing Market Commercial Bank Capital Gain
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