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 …

mispricing in the housing market. We document that out-of-town second house buyers behaved like misinformed speculators and drove …

We construct measures of the annual cost of single-family housing for 46 metropolitan areas in the United States over … the last 25 years and compare them with local rents and incomes as a way of judging the level of housing prices …

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 …