Changing integration of EMU public property markets

Yunus, Nafeesa; Swanson, Peggy E.

doi:10.1016/j.intfin.2011.09.001

Cited by 4 publications

(2 citation statements)

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“…Along NIRP, other unorthodox processes were adopted by those central banks. The covered bonds acquisition was continued by the ECB, and they broadened their asset acquisition plans to cover asset-backed securities and government bonds; long term financing for banks was also offered by the ECB [62]. The SR also stared the acquisition of securities [63], which were projected that by the end of the second quarter of 2016 would exceed that of the ECB on a proportion comparison, encompassing a little over 30% of outstanding nominal government bonds.…”

Section: Qe To Nirp -The Case Of Europementioning

confidence: 99%

“…The real estate markets appear to be influenced by the same macroeconomic factors, which influence financial assets, and bonds. There seems to be substantial interrelationships between the real estate markets inside the Eurozone since the creation of the European monetary union, and the introduction of the unified currency in the year 1999 [62].…”

Section: Property Markets In the Eurozonementioning

confidence: 99%

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An Econometric Approach to Assess the Impact of Negative Interest Rate Policy (NIRP) on Real Estate Price Inflation in the Eurozone

Hamdar¹,

Skheita²,

Hamdar³

2022

ECO

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Contemporary economists argue that negative interest rate as an unconventional monetary policy helps stimulate economic growth. The European Central Bank (ECB) entered Negative Interest Rate Policy (NIRP) territory in June 2014, when it lowered its deposit rates to below zero levels, making it the first major central bank to adopt such policy. In contrast, NIRP can have negative effects on certain economic sectors, such as the property and housing. This paper highlights the effects of negative policy rates on the real estate price inflation inside the Eurozone. The relationship between house price index, negative policy rates, government deficit, unemployment rate, and nominal unit labor cost is addressed and analyzed. Two main hypotheses were adopted i.e., to determine the direct relationship between the Deposit Interest Rate and the House Price Index, and the indirect relationship between the Deposit Interest Rate and the House Price. Furthermore, an econometric model is utilized to sort out the impact of NIRP on the real-estate price inflation in the Eurozone. The outcome of the model shows a strong relationship between negative policy rates and house price index, with government deficit, unemployment rate, and nominal unit labor cost acting as confounding variables.

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Section: Qe To Nirp -The Case Of Europementioning

confidence: 99%

Section: Property Markets In the Eurozonementioning

confidence: 99%