Euro area house prices and unconventional monetary policy surprises

Oliver Hülsewig and Horst Rottmann

Economics Letters, 2021, vol. 205, issue C

Abstract: This paper examines the reaction of house prices in a panel of euro area countries to monetary policy surprises over the period 2010–2019. Using Jordà’s (2005) local projection method, we find that real house prices rise in response to expansionary monetary policy shocks that can be related to unconventional policy measures. In the core countries including Ireland, we also find that lending for house purchases increases relative to nominal output. Thus, household debt rises.

Keywords: House prices; Unconventional monetary policy; Local projection method (search for similar items in EconPapers)
JEL-codes: E32 E52 E58 G21 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (5)

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Working Paper: Euro Area House Prices and Unconventional Monetary Policy Surprises (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:205:y:2021:i:c:s0165176521002391

DOI: 10.1016/j.econlet.2021.109962

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