the appropriate policy response. We analyze the case of Spain, where housing prices have soared since it joined the EMU … contraction. As a result, the boom-and-bust cycle would not have been avoided if Spain had remained outside the EMU during the …

small open economy model featuring a housing sector and calibrating it to Spain, we show that varying the share of …

shocks can explain over 20% of the forecasting error variance of non-fundamental house price run-ups in Ireland and Spain. We …