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Article: Commentary.(impact of increase in housing prices on monetary policy)
- Article from:
- Federal Reserve Bank of St. Louis Review
- Article date:
- July 1, 2008
- Author:
CopyrightCOPYRIGHT 2008 Federal Reserve Bank of St. Louis. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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When monetary historians look back at this decade, they will undoubtedly highlight the major increases in house prices over the early part of the decade and the sharp declines of recent years as posing a major challenge for monetary policy and central banking.
"House Prices and the Stance of Monetary Policy" by Marek Jarocinski and Frank Smets (JS) is a valuable early contribution to the understanding of this episode. It is extremely clear in spelling out and accomplishing its two major objectives: a retrospective econometric analysis of the role of housing markets in recent developments and a consideration of the potential role of house prices in a monetary ...