Sarkozy Should Curb Credit to Tame Home Prices, OECD Says
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President Nicolas Sarkozy’s government should consider curbing mortgage lending to counter rising home prices in France, the Organization for Economic Cooperation and Development said.
“There is a risk that a prolonged period of easy finance could result in a price bubble,” the Paris-based OECD said in a report released today. “If real-estate prices were to continue to rise rapidly, the authorities should implement explicit macro-prudential measures to limit the distribution of credit to households,” it added.