Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/286902 
Year of Publication: 
2021
Citation: 
[Journal:] De Economist [ISSN:] 1572-9982 [Volume:] 169 [Issue:] 4 [Publisher:] Springer US [Place:] New York, NY [Year:] 2021 [Pages:] 445-467
Publisher: 
Springer US, New York, NY
Abstract: 
We examine whether regionally differentiated macroprudential policies can address financial stability concerns and moderate house price differences in the UK. We disaggregate both the household sector and the housing stock in a two-region DSGE model with out of sync subnational housing markets and compare four policy types: standard monetary policy, leaning against the wind monetary policy, national macroprudential policy or one that targets region-specific LTV ratios. In terms of reducing variances of house prices, regionally differentiated macroprudential policy performs best, provided the policy authorities are concerned with stabilising output and house prices rather than simply minimising the variance of inflation.
Subjects: 
Macroprudential Policies
Housing
DSGE
Great Britain
JEL: 
E32
E44
E52
E58
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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