Credit Frictions, Housing Prices and Optimal Monetary Policy Rules
Abstract
We try to assest the role of household indebtedness and housing prices in the optimal design of monetary policy rules. Even though the relevance of liquidity constraints for consumption behavior has been well documented in the empirical and theoretical literature little attention has been given to credit frictions at the household level in the monetary business cycle litterature. This paper represent the first attemp of a welfare-based monetary policy evaluation in a model with heterogeneous agents and households' credit constraints. In order to evaluate optimal monetary policy we take advantage of the recent advances in computational economics by following the approach illustrated by Schmitt-Grohe and Uribe (2003).(This abstract was borrowed from another version of this item.)
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Paper provided by Money Macro and Finance Research Group in its series Money Macro and Finance (MMF) Research Group Conference 2005 with number 67.Length:
Date of creation: 03 Sep 2005
Date of revision:
Handle: RePEc:mmf:mmfc05:67
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Related research
Keywords:Other versions of this item:
- Caterina Mendicino & Andrea Pescatori, 2004. "Credit Frictions, housing prices and optimal monetary policy Rules," Departmental Working Papers of Economics - University 'Roma Tre' 0042, Department of Economics - University Roma Tre.
- NEP-ALL-2006-03-05 (All new papers)
- NEP-CBA-2006-03-05 (Central Banking)
- NEP-DGE-2006-03-05 (Dynamic General Equilibrium)
- NEP-FMK-2006-03-05 (Financial Markets)
- NEP-MAC-2006-03-05 (Macroeconomics)
- NEP-MON-2006-03-05 (Monetary Economics)
- NEP-URE-2006-03-05 (Urban & Real Estate Economics)
References
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Lambertini, Luisa & Mendicino, Caterina & Punzi, Maria Teresa, 2010.
"Expectations-Driven Cycles in the Housing Market,"
MPRA Paper
26128, University Library of Munich, Germany.
- Luisa Lambertini & Caterina Mendicino & Maria Teresa Punzi, 2010. "Expectations-Driven Cycles in the Housing Market," Working Papers 201001, Center for Fiscal Policy, Swiss Federal Institute of Technology Lausanne, revised Oct 2010.
- Mendicino, Caterina & Lambertini, Luisa & Punzi, Maria Teresa, 2010. "Expectations-Driven Cycles in the Housing Market," MPRA Paper 20776, University Library of Munich, Germany.
- Luisa Lambertini & Caterina Mendicino & Maria Tereza Punzi, 2010. "Expectations-Driven Cycles in the Housing Market," Working Papers w201004, Banco de Portugal, Economics and Research Department.
- Luisa Lambertini & Caterina Mendicino & Maria Teresa Punzi, 2010. "Expectations-driven cycles in the housing market," Banco de España Working Papers 1021, Banco de España.
- Lambertini, Luisa & Mendicino , Caterina & Punzi , Maria Teresa, 2012. "Expectations-driven cycles in the housing market," Research Discussion Papers 2/2012, Bank of Finland.
- Maria Teresa Punzi & Caterina Mendicino & Luisa Lambertini, 2010. "Expectation-Driven Cycles in the Housing Market," 2010 Meeting Papers 251, Society for Economic Dynamics.
- Büyükkarabacak, Berrak & Mykhaylova, Olena, 2010. "Housing market dynamics and welfare," MPRA Paper 23322, University Library of Munich, Germany.
- Rubio, Margarita & Carrasco-Gallego, José A., 2012. "Macroprudential Measures, Housing Markets, and Monetary Policy," Dynare Working Papers 23, CEPREMAP.
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