Euro area house price fluctuations and unconventional monetary policy surprises

Oliver Hülsewig and Horst Rottmann

No 80, Weidener Diskussionspapiere from University of Applied Sciences Amberg-Weiden (OTH)

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 house prices rise in response to expansionary monetary policy shocks that can be related to unconventional monetary policy measures. Thus, monetary policy should take into account the risk of house price fluctuations when implementing new large scale policy interventions.

Keywords: House price fluctuations; 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
New Economics Papers: this item is included in nep-cba, nep-eec, nep-mac, nep-mon and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:hawdps:80

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