We analytically characterize optimal monetary policy for an augmented New Keynesian model with a housing sector. With … rational private sector expectations about housing prices and inflation, optimal monetary policy can be characterized by a … standard 'target criterion' that refers to inflation and the output gap, without making reference to housing prices. When the …

We analytically characterize optimal monetary policy for an augmented New Keynesian model with a housing sector. In a … setting where the private sector has rational expectations about future housing prices and inflation, optimal monetary policy … can be characterized without making reference to housing price developments: commitment to a 'target criterion' that …

We analytically characterize optimal monetary policy for a New Keynesian model with a housing sector. If one supposes … that the private sector has rational expectations about future housing prices and inflation, optimal monetary policy can be … characterized without making reference to housing price developments: commitment to a “target criterion” that refers only to …

Between 2000 and 2006, the CaseShiller/Standard and Poor's Housing Price Index increased by 74 percent in real terms …, as America experienced a massive housing bubble. Moreover prices in some metropolitan areas grew even faster. Prices in … partially because of housing-related losses. What caused this great boom-bust cycle that tore through America's housing markets …

of housing bubbles that predicts that places with more elastic housing supply have fewer and shorter bubbles, with …Like many other assets, housing prices are quite volatile relative to observable changes in fundamentals. If we are … going to understand boom-bust housing cycles, we must incorporate housing supply. In this paper, we present a simple model …

of housing bubbles that predicts that places with more elastic housing supply have fewer and shorter bubbles, with …Like many other assets, housing prices are quite volatile relative to observable changes in fundamentals. If we are … going to understand boom-bust housing cycles, we must incorporate housing supply. In this paper, we present a simple model …

We analytically characterize optimal monetary policy for an augmented New Keynesian model with a housing sector. In a … setting where the private sector has rational expectations about future housing prices and inflation, optimal monetary policy … can be characterized without making reference to housing price developments: commitment to a "target criterion" that …