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