Do central banks react to house prices?

Arbeitspapier

The substantial fluctuations in house prices recently experienced by many industrialized economies have stimulated a vivid debate on the possible implications for monetary policy. In this paper, we ask whether the U.S. Fed, the Bank of Japan and the Bank of England have reacted to house prices. We study the responses of these central banks by estimating a structural model for each country where credit constrained agents borrow against real estate. The main result is that house price movements did play a separate role in the U.S., U.K.. and Japanese central bank reaction functions.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Sveriges Riksbank Working Paper Series ; No. 217

Classification and Topics

• Classification: Wirtschaft ; Price Level; Inflation; Deflation ; Financial Markets and the Macroeconomy ; Monetary Policy ; Central Banks and Their Policies
• Subject: House prices ; monetary policy ; DSGE models ; Bayesian estimation ; Geldpolitik ; Immobilienpreis ; Dynamisches Gleichgewicht ; Bayes-Statistik ; Großbritannien ; Japan ; USA ; Immobilienpreis

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Finocchiaro, Daria ; Queijo von Heideken, Virginia
• Event: Veröffentlichung
• (who): Sveriges Riksbank
• (where): Stockholm
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/81930
• Last update: 10.03.2025, 11:42 AM CET