Monetary Policy and House Prices – How Strong is the Transmission?
The effect of changes in monetary policy interest rates on house prices has been a centre of attention in many economic and policy debates, as well as in an extensive academic literature. While the direction of the effect of a change in rates is more or less clear from both the theoretical and empirical perspective, the estimated magnitude of the effect differs from study to study, sometimes significantly. Thus, in our research paper The effect of monetary policy on house prices – how strong is the transmission? we focus on this relationship and aim to examine the true effect by means of a quantitative survey of the available literature (a meta-analysis). The aim of meta-analysis is to estimate the average effect reported in the literature, adjust it for potential publication bias and explain any differences.