Optimal interest rate rule in a DSGE model with housing market spillovers

Xiaojin Sun; Kwok Ping Tsang

doi:10.1016/j.econlet.2014.07.030

Optimal interest rate rule in a DSGE model with housing market spillovers

Xiaojin Sun, Kwok Ping Tsang

Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review

9 Citations (Scopus)

Abstract

This paper studies the optimal interest rate rule in a DSGE model with housing market spillovers (Iacoviello and Neri, 2010). We find that the optimal rule responds to house price inflation even when the stabilization of house price is not among the objectives of the policymaker, and that the strength of the response depends crucially on a few structural parameters. © 2014 Elsevier B.V.

Original language	English
Pages (from-to)	47-51
Journal	Economics Letters
Volume	125
Issue number	1
DOIs	https://doi.org/10.1016/j.econlet.2014.07.030
Publication status	Published - Oct 2014
Externally published	Yes

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 11 Sustainable Cities and Communities

Research Keywords

DSGE model
House price inflation
Optimal interest rate rule

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10.1016/j.econlet.2014.07.030

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abstract = "This paper studies the optimal interest rate rule in a DSGE model with housing market spillovers (Iacoviello and Neri, 2010). We find that the optimal rule responds to house price inflation even when the stabilization of house price is not among the objectives of the policymaker, and that the strength of the response depends crucially on a few structural parameters. {\textcopyright} 2014 Elsevier B.V.",

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AU - Tsang, Kwok Ping

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AB - This paper studies the optimal interest rate rule in a DSGE model with housing market spillovers (Iacoviello and Neri, 2010). We find that the optimal rule responds to house price inflation even when the stabilization of house price is not among the objectives of the policymaker, and that the strength of the response depends crucially on a few structural parameters. © 2014 Elsevier B.V.

KW - DSGE model

KW - House price inflation

KW - Optimal interest rate rule

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UR - https://www.scopus.com/record/pubmetrics.uri?eid=2-s2.0-84906775618&origin=recordpage

U2 - 10.1016/j.econlet.2014.07.030

DO - 10.1016/j.econlet.2014.07.030

M3 - RGC 21 - Publication in refereed journal

SN - 0165-1765

VL - 125

SP - 47

EP - 51

JO - Economics Letters

JF - Economics Letters

IS - 1

ER -

Optimal interest rate rule in a DSGE model with housing market spillovers

Abstract

UN SDGs

Research Keywords

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