Euro Area House Prices and Unconventional Monetary Policy Surprises

15 Pages Posted: 5 May 2021

See all articles by Oliver Hülsewig

Oliver Hülsewig

Munich University of Applied Sciences; CESifo (Center for Economic Studies and Ifo Institute)

Horst Rottmann

University of Applied Sciences Amberg-Weiden

Date Written: 2021

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.

JEL Classification: E520, E580, E320, G210

Suggested Citation

Hülsewig, Oliver and Rottmann, Horst, Euro Area House Prices and Unconventional Monetary Policy Surprises (2021). CESifo Working Paper No. 9045, Available at SSRN: https://ssrn.com/abstract=3837773 or http://dx.doi.org/10.2139/ssrn.3837773

Oliver Hülsewig (Contact Author)

Munich University of Applied Sciences ( email )

Munich
Germany

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

Horst Rottmann

University of Applied Sciences Amberg-Weiden ( email )

Hetzenrichter Weg 15
96215 Lichtenfels
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
35
Abstract Views
195
PlumX Metrics