Monetary Policy and Housing Market Price Dynamics in The Czech Republic

Abstract

This thesis investigates the impact of monetary policy on real estate prices in the Czech Republic. Using wavelet coherence analysis, the study identifies time-varying relationships between housing prices and interest rates over the period 2008-2024. Additionally, the laboratory experiment examines how monetary policy influences real estate prices. The findings show that monetary policy affects the real estate market both through traditional transmission channels and through expectation formation. These results underline the importance of a comprehensive monetary policy approach in maintaining financial stability.

Description

Subject(s)

Monetary policy, real estate prices, wavelet coherence, interest rates, inflation expectations, central bank communication, real estate investment trust, financial stability

Citation