Investigating the Housing Market Fluctuation under an Expansionary Monetary Policy in Australia

Henry Liu, Chunlu Liu

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

This research empirically investigates the impact of monetary policy on the housing market in Australia from 1996 to 2009. Three primary variables associated with the housing sector and monetary policy, including interest rates, money supply and house prices, are estimated by a structural vector autoregression (VAR) model. Depending upon the analysis using the impulse response function, it can be identified that monetary policy significantly affects the housing market in Australia by the adjustments in interest rates and money supply. The empirical results from this study may be useful for policy makers to enact appropriate policies in relation to the infrastructure planning.
Original languageEnglish
Pages (from-to)81-89
Number of pages10
JournalPacific Rim Property Research Journal
Volume18
Issue number1
DOIs
Publication statusPublished - Jan 2012

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