Economics at your fingertips  

The housing price boom of the late 1990s: Did inflation targeting matter?

Sébastien Frappa and Jean-Stéphane Mésonnier ()

Journal of Financial Stability, 2010, vol. 6, issue 4, 243-254

Abstract: The recent boom in the housing markets of most developed economies has spurred criticism that inflation targeting central banks may have neglected the build-up of financial imbalances. This paper provides a formal empirical test of such claims, using a standard program evaluation methodology to control for a possible bias due to self-selection into inflation targeting. We consider 17 industrial economies over the period 1980-2007, among which nine countries have targeted inflation at some point. We find robust evidence of a significant positive effect of inflation targeting on real house price growth and on the house price-to-rent ratio.

Keywords: Inflation; targeting; Housing; prices; Treatment; effect; OECD; countries (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Journal of Financial Stability is currently edited by I. Hasan, W. C. Hunter and G. G. Kaufman

More articles in Journal of Financial Stability from Elsevier
Bibliographic data for series maintained by Haili He ().

Page updated 2020-09-13
Handle: RePEc:eee:finsta:v:6:y:2010:i:4:p:243-254