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Empirical Economics

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11.01.2017

House prices, credit and the effect of monetary policy in Norway: evidence from structural VAR models

verfasst von: Ørjan Robstad

Erschienen in: Empirical Economics | Ausgabe 2/2018

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Abstract

This paper investigates the responses of house prices and household credit to monetary policy shocks in Norway, using Bayesian structural VAR models. The analysis indicates that the effect of a monetary policy shock on house prices is large, while the effect on household credit is muted. This is consistent with a relatively small refinancing rate (refinancing rate refers to the share of outstanding mortgages that are refinanced each period due to changes in, for example, house prices or interest rate) of the mortgage stock each quarter. Using monetary policy to guard against financial instability by mitigating property-price movements may prove effective, but trying to mitigate household credit may prove costly in terms of GDP and inflation variation.

Vorheriger Artikel How do financial cycles affect public debt cycles?

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Titel: House prices, credit and the effect of monetary policy in Norway: evidence from structural VAR models
verfasst von: Ørjan Robstad
Publikationsdatum: 11.01.2017
Verlag: Springer Berlin Heidelberg
Erschienen in: Empirical Economics / Ausgabe 2/2018
Print ISSN: 0377-7332
Elektronische ISSN: 1435-8921
DOI: https://doi.org/10.1007/s00181-016-1222-1

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