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Housing bubbles and monetary policy : a reassessment

O'Meara, Graeme - In: The economic and social review 46 (2015) 4, pp. 521-565

Persistent link: https://www.econbiz.de/10011411304

A comment on monetary policy and rational asset price bubbles

Allen, Franklin; Barlevy, Gadi; Gale, Douglas - 2023

Galí (2014) showed that a monetary policy rule that raises interest rates in response to bubbles can paradoxically lead … to larger bubbles. This comment shows that a central bank that wants to dampen bubbles can always do so by raising … argue Galí's model contains additional equilibria in which more aggressive rules dampen bubbles. We show that for these …

Persistent link: https://www.econbiz.de/10014316806

Should the Fed increase the interest rate to promote financial stability?

Eden, Benjamin - 2016

Persistent link: https://www.econbiz.de/10011448710

Interest rates and house prices in the United States and around the world

Sutton, Gregory D.; Mihaljek, Dubravko; Subelyte, Agne - 2017

Persistent link: https://www.econbiz.de/10011760239

The special effect of interest rate cuts on housing prices

Lin, Che-Chun; Tsai, I-Chun - In: Journal of business economics and management 22 (2021) 3, pp. 776-798

This study uses theoretical models and empirical research to explain that interest rates affect the structure of housing price formation and correction rather than affect the price alone. In particular, when interest rates are substantially reduced, the correction of housing prices toward...

Persistent link: https://www.econbiz.de/10012506319

Monetary ease - a factor behind financial crises? : Some evidence from OECD countries

Ahrend, Rudiger (contributor) - 2008

This paper addresses the question of whether and how easy monetary policy may lead to excesses in financial and real asset markets and ultimately result in financial dislocation. It presents evidence suggesting that periods when short-term interest rates have been persistently and significantly...