This paper explores the positive relationship betwen home prices and household spending by following a panel of Australian households over the period 2003 to 2010. There are three hypotheses put forth in the literature to explain this relationship: (1) increases in home prices raise spending via...

The effectiveness of China’s monetary policy hinges on the existence of a robust link between the growth of monetary aggregates and inflation. This paper considers this link during the 2000s using Structural VAR models and simulated out-of-sample forecasting techniques. The results...

We document some new stylised facts about how Australian homeowners value their homes using household panel data and unit-record data on home sale prices. We find that homeowners' price beliefs are unbiased at the postcode level, on average, although there is considerable dispersion in the...