House Prices, Credit and the Effect of Monetary Policy in Norway: Evidence from Structural VAR Models

Arbeitspapier

This paper investigates the responses of house prices and household credit to monetary policy shocks in Norway, using Bayesian structural VAR models. I find that the effect of a monetary policy shock on house prices is large, while the effect on household credit is muted. This is consistent with a relatively small refinancing rate of the mortgage stock each quarter. Using monetary policy to guard against - financial instability by mitigating property-price movements may prove effective, but trying to mitigate household credit may prove costly in terms of GDP and inflation variation.

Object Details

• ISBN: 978-82-7553-804-6
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 05/2014

Classification and Topics

• Classification: Wirtschaft ; Business Fluctuations; Cycles ; Prices, Business Fluctuations, and Cycles: Forecasting and Simulation: Models and Applications ; Financial Markets and the Macroeconomy ; Monetary Policy
• Subject: structural VAR ; house prices ; credit ; monetary policy

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Robstad, Ørjan
• Event: Veröffentlichung
• (who): Norges Bank
• (where): Oslo
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/210054
• Last update: 10.03.2025, 11:44 AM CET