CORDIS Project
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This project investigates the impact of housing and mortgage debt on monetary policy transmission. By developing a model that captures household diversity, it aims to understand how changes in monetary policy affect housing markets and consumer behavior.
The Great Recession has brought to light the importance of housing and household debt for the propagation of shocks in the macroeconomy.
For a majority of households, owner-occupied housing represents the single most important asset in the household portfolio and is tied to the single largest liability—the mortgage.
The broad objective of this project is to investigate the rich role that housing and nominal mortgage borrowing jointly play in the transmission of monetary policy.
First, monetary…
ISTITUTO UNIVERSITARIO EUROPEO
EUROPEAN UNIVERSITY INSTITUTE
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