House prices, credit and the effect of monetary policy in Norway: Evidence from Structural VAR Models

Ørjan Robstad ()
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Ørjan Robstad: Norges Bank, http://www.norges-bank.no/

No 2014/05, Working Paper from Norges Bank

Abstract: This paper investigates the responses of house prices and household credit to monetary policy shocks in Norway, using Bayesian structural VAR models. I find that the effect of a monetary policy shock on house prices is large, while the effect on household credit is muted. This is consistent with a relatively small refinancing rate of the mortgage stock each quarter. Using monetary policy to guard against - financial instability by mitigating property-price movements may prove effective, but trying to mitigate household credit may prove costly in terms of GDP and inflation variation.

Keywords: House Prices; Credit; Monetary Policy; Structural VAR (search for similar items in EconPapers)
JEL-codes: E32 E37 E44 E52 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2014-05-15
New Economics Papers: this item is included in nep-ban, nep-cba, nep-mac, nep-mon and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:bno:worpap:2014_05

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