Monetary policy and the house price boom across U.S. states

  • 3.54 MB
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by
Federal Reserve Bank of Atlanta , [Atlanta, Ga.]
StatementMarco Del Negro and Christopher Otrok.
SeriesWorking paper series / Federal Reserve Bank of Atlanta -- 2005-24, Working paper series (Federal Reserve Bank of Atlanta : Online) -- 2005-24.
ContributionsOtrok, Christopher., Federal Reserve Bank of Atlanta.
Classifications
LC ClassificationsHB1
The Physical Object
FormatElectronic resource
ID Numbers
Open LibraryOL23037377M
LC Control Number2006618077

The boom in house prices is a national phenomenon, monetary policy may well be a likely suspect. To address the issue of a potential national housing cycle we estimate a dynamic factor modelinthespiritofGeweke(),SargentandSims(),andStockandWatson(), on state-level OFHEO house price.

The authors find the impact of policy shocks on house prices to be very small.

Description Monetary policy and the house price boom across U.S. states FB2

Keywords: housing, monetary policy, Marco and Otrok, Christopher, Monetary Policy and the House Price Boom Across U.S. States Cited by: The recent period (–04) has been different, however: “Local bubbles” have been important in some states, but overall the increase in house prices is a national phenomenon.

The authors then use a VAR to investigate the extent to which expansionary monetary policy is responsible for the common component in house price.

The recent period (–04) has been different, however: “Local bubbles ” have been important in some states, but overall the increase in house prices is a national phenomenon.

The authors then use a VAR to investigate the extent to which expansionary monetary policy is responsible for the common component in house price movements.

Fu () uses such a model to decompose house prices in 62 U.S. metropolitan areas into national, regional, and metro-specific idiosyncratic factors using quarterly FHFA price data from Marco Del Negro & Christopher Otrok, "Monetary policy and the house price boom across U.S.

Details Monetary policy and the house price boom across U.S. states FB2

states," FRB Atlanta Working PaperFederal Reserve Bank of Atlanta. Handle:. Monetary policy and the house price boom across U.S. states. By Marco Del Negro and Christopher Otrok. Get PDF ( KB) Abstract. The authors use a dynamic factor model estimated via Bayesian methods to disentangle the relative importance of the common component in the Office of Federal Housing Enterprise Oversight’s house price Author: Marco Del Negro and Christopher Otrok.

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99 Luftballons: Monetary policy and the house price boom across U.S. states We use a dynamic factor model estimated on quarterly state-level data from to via Bayesian methods to disentangle the relative importance of the common component in OFHEO house price movements from local (state Cited by: Cross-state heterogeneity in the recent house price boom: assessing the role of monetary policy shocks.

Notes: The gray bars in the figure represent the component of the average growth rates in Cited by: 99 Luftballons: Monetary policy and the house price boom across U.S.

states Article in Journal of Monetary Economics 54(7) October with Reads How we measure 'reads'. boom in house prices is a national phenomenon, monetary policy may well be a likely suspect.

To address the issue of a potential national housing cycle we estimate a dynamic factor model in the spirit of Geweke (), Sargent and Sims (), and Stock and Watson (), on state-level OFHEO house price.

"Monetary policy and the house price boom across U.S. states," FRB Atlanta Working PaperFederal Reserve Bank of Atlanta. Ben S. Bernanke & Jean Boivin & Piotr Eliasz, " Measuring the Effects of Monetary Policy.

On the contrary, if the boom in house prices is a national phenomenon, monetary policy may well be a likely suspect. To address the issue of a potential national housing cycle we estimate a dynamic factor model in the spirit of Geweke (), Sargent and Sims (), and Stock and Watson (), on state-level OFHEO house price.

Monetary Policy and Housing Booms the massive run-up in house prices in the United States and many 1According to Shiller’s () time series of real U.S. house prices, the house price boom. Measuring the effects of monetary policy on house prices and the economy John C Williams 1.

It’s a pleasure to participate in this excellent conference dealing with important and timely issues. This is my. 99 Luftballons: Monetary policy and the house price boom across U.S. states. Marco Del Negro and Christopher Otrok (). Journal of Monetary Economics,vol.

54, issue 7, Date: Cited by:   Del Negro, Marco and Otrok, Christopher () 99 Luftballons: Monetary policy and the house price boom across states.

Journal of Monetary Econom – Eickmeier, Cited by: Negro, M. and Otrok, C. (), ‘Monetary Policy and the House Price Boom across U. State’, Federal Reserve Bank of Atlanta, Working Paper Series, No. Google Scholar Neri, S. (), ‘Monetary Policy and Stock Price Cited by: 1. To put this in perspective, consider the magnitude of the run-up in house prices in the United States over – Figure 2 shows the U.S.

house price-to-rent ratio over the past 40 years. In the five years running up to the peak in the spring ofthe house price.

Housing Finance and Real-Estate Booms: A Cross-Country Perspective Fifth, the role of monetary policy in addressing house-related credit booms should not always be downplayed.

Despite the absence of important inflation pressures, about 60 percent of the identified But house-price (real-estate) boomFile Size: 2MB. Monetary Policy and Asset Prices: A Look Back at Past U.S. Stock Market Booms Michael D. Bordo and David C.

Wheelock L arge swings in asset prices and economic activity in the United States, Japan, and other countries over the past several years have brought new attention to the linkages between monetary policy and asset markets.

Monetary policy. prices: Increases in our preferred measure of (nominal) house prices in the United States averaged 12½ percent (on a year-over-year basis) during the –05 period. Sincehowever, both residential investment and house prices have collapsed. Monetary policy. Journal of Monetary Economics, October55 (7), pp.

See also ›› Federal Reserve Bank of New York Staff Reports 99 Luftballons: Monetary Policy and the House Price Boom across U.S. States With Chris Otrok Journal of Monetary.

"99 Luftballons: Monetary Policy and the House Price Boom Across U.S. States," (with M. Del Negro) Journal of Monetary Economics, "International Business Cycles: World, Region and Country. Several studies indicate that most of the cost of these higher tariffs has been passed through to U.S.

importers. 1 If we assume a commonly used elasticity of for the response of imports to changes in prices, it implies that tariffs may have lowered U. role. However, when we look at individual house price boom episodes the cause of the price boom is not so clear.

The evidence suggests that the house price boom that occurred in the US during the s and s was not due to easy bank credit. Loose monetary policy Cited by:   This differential impact of monetary policy provides an exogenous source of variation that can be used to assess the effect of monetary policy on state-level housing prices.

Policy accommodation equivalent to basis points on an equilibrium real federal funds rate basis raises housing prices.

Measuring Monetary Policy’s Effect on House Prices To put this in perspective, consider the magnitude of the run-up in house prices in the United States over – Figure 2 shows the U.S.

house price-to-rent ratio over the past 40 years. In the five years # of House. Monetary policy can be defined broadly as any policy relating to the supply of money. Since the main agency concerned with the supply of money is the nation's central bank, the Federal Reserve, monetary policy Cited by: 2.

Monetary Policy and The Long Boom John B. Taylor I Long Boom is that the U.S. economy has been lucky with respect to the shocks hit-ting the economy. Recall that in the s we had several large oil shocks. process in the United States. Monetary policy File Size: KB.

This is easily the most important book ofarguably the most important economics book in a long time, and the best book on money that’s yet been : John Tamny.Kelton was chief economist on the U.S.

Senate Budget Committee (minority staff) and an advisor to the Bernie presidential campaign. Kelton is a regular commentator on national radio and television and speaks across the world at large gatherings of people interested in global finance, political economy and public : Stephanie Kelton.The evidence suggests that the house price boom that occurred in the US during the s and s was not due to easy bank credit.

Loose monetary policy (as well as low inflation) played some role Cited by: