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Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/53941
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Full metadata record
| DC Field | | Value | | Language |
| dc.contributor.author | | Tomura, Hajime | | en_US |
| dc.date.accessioned | | 2011-12-15T12:58:31Z | | - |
| dc.date.available | | 2011-12-15T12:58:31Z | | - |
| dc.date.issued | | 2009 | | en_US |
| dc.identifier.uri | | http://hdl.handle.net/10419/53941 | | - |
| dc.description.abstract | | This paper uses a small-open economy model for the Canadian economy to examine the optimal Taylor-type monetary policy rule that stabilizes output and inflation in an environment where endogenous boom-bust cycles in house prices can occur. The model shows that boom-bust cycles in house prices emerge when credit-constrained mortgage borrowers expect that future house prices will rise and this expectation is neither shared by savers nor realized ex-post. These boom-bust cycles replicate the stylized features of housing-market boom-bust cycles in industrialized countries. In an environment where mortgage borrowers are occasionally over-optimistic, the central bank should be less responsive to inflation, more responsive to output, and slower to adjust the nominal policy interest rate. This optimal monetary policy rule dampens endogenous boom-bust cycles in house prices, but prolongs inflation target horizons due to weak policy reactions to inflation fluctuations after fundamental shocks. | | en_US |
| dc.language.iso | | eng | | en_US |
| dc.publisher | | Bank of Canada Ottawa | | en_US |
| dc.relation.ispartofseries | | Bank of Canada Working Paper 2009,32 | | en_US |
| dc.subject.jel | | E44 | | en_US |
| dc.subject.jel | | E52 | | en_US |
| dc.subject.ddc | | 330 | | en_US |
| dc.subject.keyword | | Credit and credit aggregates | | en_US |
| dc.subject.keyword | | Financial stability | | en_US |
| dc.subject.keyword | | Inflation targets | | en_US |
| dc.subject.stw | | Konjunktur | | en_US |
| dc.subject.stw | | Immobilienpreis | | en_US |
| dc.subject.stw | | Geldpolitik | | en_US |
| dc.subject.stw | | Gesamtwirtschaftliche Produktion | | en_US |
| dc.subject.stw | | Inflationsrate | | en_US |
| dc.subject.stw | | Taylor-Regel | | en_US |
| dc.subject.stw | | Kleines-offenes-Land | | en_US |
| dc.subject.stw | | Kanada | | en_US |
| dc.title | | Optimal monetary policy during endogenous housing-market boom-bust cycles | | en_US |
| dc.type | | Working Paper | | en_US |
| dc.identifier.ppn | | 618954791 | | en_US |
| dc.rights | | http://www.econstor.eu/dspace/Nutzungsbedingungen | | en_US |
| Appears in Collections: | | Bank of Canada Working Papers
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