Time-Varying Role of House Prices on Monetary Policy in Türkiye

Authors : Savaş Gayaker, Ahmet Güney

Pages : 21-36

Doi:10.17233/sosyoekonomi.2024.03.02

View : 95 | Download : 83

Publication Date : 2024-07-30

Article Type : Research

Abstract :The main focus of this study is examining the time-varying effects of house prices on monetary policy in Türkiye from February 2010 to November 2021. We analyse these effects using a time-varying parameter vector autoregressive model with stochastic volatility (TVP VAR-SV). The evidence indicates that responses of inflation to positive house price shocks decrease over time. The response of credit and interest rates to positive house price shocks increases after 2018. The results reveal that the responses of the Central Bank of the Republic of Türkiye (CBRT) to the changes in the housing market have changed over time.
Keywords : Konut Fiyatı, TVP VAR-SV, Para Politikası