Monetary policy and property booms: dealing with the heterogeneity of the euro zone

By Christophe Blot and Fabien Labondance

The transmission of monetary policy to economic activity and inflation takes place through various channels whose role and importance depend largely on the structural characteristics of an economy. The dynamics of credit and property prices are at the heart of this process. There are multiple sources of heterogeneity between the countries of the euro zone, which raises questions about the effectiveness of monetary policy but also about the means to be used to reduce this heterogeneity. Continue reading “Monetary policy and property booms: dealing with the heterogeneity of the euro zone”

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