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The effects of monetary policy on housing prices
Abstract
Abstract. Many factors have an impact on housing prices. Among these factors, short term interest rates have significant importance. It is because changes in short term interests are important indicators of the efficiency of the monetary policy and the functioning of the housing prices channel is an important tool for the monetary authority to have an impact on economic activities. The purpose of this paper is to study the efficiency of the housing prices channel in Turkey. In our study, we used VAR method based on data from 2007-2019. As a result of the analysis, we found out that interest rates and the housing credit index directly affect housing prices in Turkey.
Keywords. Housing prices, Monetary transmission mechanism, Housing price channel, VAR analysis.
JEL. E20, E40, E50.Keywords
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DOI: http://dx.doi.org/10.1453/ter.v6i3.1952
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