• Media type: E-Book
  • Title: How Should Macroprudential Policy Respond to Changes in Housing Prices
  • Contributor: Gama, Joao [VerfasserIn]
  • imprint: [S.l.]: SSRN, 2022
  • Extent: 1 Online-Ressource (38 p)
  • Language: English
  • DOI: 10.2139/ssrn.4201788
  • Identifier:
  • Origination:
  • Footnote: Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments August 26, 2022 erstellt
  • Description: A surge in house prices may merit changes in macroprudential policy. This work introduces land into a quantitative non-linear model of financial crises devised to study the design and effectiveness of optimal macroprudential policy. This framework is used to perform a comparative statics exercise and study how optimal macroprudential policy changes when an exogenous and permanent rise in external demand raises housing prices. Results show that, even in such a setting, macroprudential policy should lean against the wind in most circumstances. The role of both fundamentals news and the global liquidity regime is significantly strengthened by the rise in external demand
  • Access State: Open Access