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https://hdl.handle.net/10419/53941
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DC Field | Value | Language |
---|---|---|
dc.contributor.author | Tomura, Hajime | en |
dc.date.accessioned | 2011-12-15T12:58:31Z | - |
dc.date.available | 2011-12-15T12:58:31Z | - |
dc.date.issued | 2009 | - |
dc.identifier.pi | doi:10.34989/swp-2009-32 | en |
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 |
dc.language.iso | eng | en |
dc.publisher | |aBank of Canada |cOttawa | en |
dc.relation.ispartofseries | |aBank of Canada Working Paper |x2009-32 | en |
dc.subject.jel | E44 | en |
dc.subject.jel | E52 | en |
dc.subject.ddc | 330 | en |
dc.subject.keyword | Credit and credit aggregates | en |
dc.subject.keyword | Financial stability | en |
dc.subject.keyword | Inflation targets | en |
dc.subject.stw | Konjunktur | en |
dc.subject.stw | Immobilienpreis | en |
dc.subject.stw | Geldpolitik | en |
dc.subject.stw | Gesamtwirtschaftliche Produktion | en |
dc.subject.stw | Inflationsrate | en |
dc.subject.stw | Taylor-Regel | en |
dc.subject.stw | Kleines-offenes-Land | en |
dc.subject.stw | Kanada | en |
dc.title | Optimal monetary policy during endogenous housing-market boom-bust cycles | - |
dc.type | Working Paper | en |
dc.identifier.ppn | 618954791 | en |
dc.rights | http://www.econstor.eu/dspace/Nutzungsbedingungen | en |
dc.identifier.repec | RePEc:bca:bocawp:09-32 | en |
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