household indebtedness and housing price fluctuations compared with a monetary policy rule augmented with house price inflation … houses and we introduce news shocks on housing demand. We estimate the model with Canadian data using Bayesian methods. We … find that the introduction of news shocks can generate a housing market boom-bust cycle, the bust following unrealized …

either banking crises or housing crises dampen output far more than ordinary recessions. Using a parametric panel framework … to be significantly smaller following recessions associated with banking crises or housing crises. Our paper corroborates … the earlier literature on recessions and recoveries. -- Business cycle ; banking crisis ; housing crisis ; panel data …