Should monetary policy lean against housing market booms? We approach this question using a small-scale, regime …-switching New Keynesian model, where housing market crashes arrive with a logit probability that depends on the level of household …

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 …

In this paper, we build a dynamic stochastic general-equilibrium model with housing and household debt, and compare the … effectiveness of monetary policy, housing-related fiscal policy, and macroprudential regulations in reducing household indebtedness …

the United States, housing collateral effects on consumption are absent. Given credit conditions, rising house prices … mostly explained by movements in incomes, housing supply, mortgage interest rates and credit conditions, suggesting that the …