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Should monetary policy lean against housing market booms? We approach this question using a small-scale, regime-switching New Keynesian model, where housing market crashes arrive with a logit probability that depends on the level of household debt. This crisis regime is characterized by an...
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household indebtedness and housing price fluctuations compared with a monetary policy rule augmented with house price inflation …
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This paper investigates the differential impact of monetary policy on homeownership and housing returns among Black …-specific entries and exits of homeownership and housing returns for 140 metropolitan areas in the United States. Our findings reveal …% lower entry into homeownership than White households. This heterogeneity primarily stems from the less favorable labor …
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