MONETARY, MACROPRUDENTIAL POLICIES AND HOUSING CYCLES: EXPLORING THE NEXUS IN TURKEY

Given the pro-cyclicality of the financial cycles on the business cycles, it is ofimportance to analyze whether the use of the traditional monetary policy instruments along with the prudential responsibilities result in the prevention of unsustainable financial cycles e.g., housing cycles. Still, there is not enough empirical evidence regarding the exploration of the nexus between housing variables and monetary – macroprudential policy rules. Observing the developments in housing market in Turkey, that is, the simultaneous increase in both house prices and residential investments in the last decade, the nexus between housing market and macro economy deserves a further investigation. Accordingly, a new Keynesian DSGE model is estimated with Turkish datafor a period 2010-2014 using Bayesian techniques in this study. Results reveal that arguments for a monetary policy regime that produces aggregate price stability will, as a byproduct, tend to promote stability of housing markets don’t fully hold in the estimation. It can also be stated that the monetary policy rules with existing prudential policy instruments may not result in prevention of further housing “bubbles”. The variance-shock decomposition analyses show that demand and supply shocks dramatically determine the cycles of the real housing prices and residential investment whereas the monetary policy shocks and shocks in central bank’s inflation target do not explain the volatility of the housing variables.
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Bibtex @ { muiibd177553, journal = {Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi}, issn = {2587-2672}, address = {}, publisher = {Marmara Üniversitesi}, year = {2016}, volume = {37}, number = {2}, pages = {233 - 260}, doi = {10.14780/iibd.00004}, title = {MONETARY, MACROPRUDENTIAL POLICIES AND HOUSING CYCLES: EXPLORING THE NEXUS IN TURKEY}, key = {cite}, author = {Doğruel, Ali and Polat, Umurcan} }
APA Doğruel, A. & Polat, U. (2016). MONETARY, MACROPRUDENTIAL POLICIES AND HOUSING CYCLES: EXPLORING THE NEXUS IN TURKEY . Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi , 37 (2) , 233-260 . DOI: 10.14780/iibd.00004
MLA Doğruel, A. , Polat, U. "MONETARY, MACROPRUDENTIAL POLICIES AND HOUSING CYCLES: EXPLORING THE NEXUS IN TURKEY" . Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi 37 (2016 ): 233-260 <
Chicago Doğruel, A. , Polat, U. "MONETARY, MACROPRUDENTIAL POLICIES AND HOUSING CYCLES: EXPLORING THE NEXUS IN TURKEY". Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi 37 (2016 ): 233-260
RIS TY - JOUR T1 - MONETARY, MACROPRUDENTIAL POLICIES AND HOUSING CYCLES: EXPLORING THE NEXUS IN TURKEY AU - AliDoğruel, UmurcanPolat Y1 - 2016 PY - 2016 N1 - doi: 10.14780/iibd.00004 DO - 10.14780/iibd.00004 T2 - Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi JF - Journal JO - JOR SP - 233 EP - 260 VL - 37 IS - 2 SN - 2587-2672- M3 - doi: 10.14780/iibd.00004 UR - Y2 - 2022 ER -
EndNote %0 Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi MONETARY, MACROPRUDENTIAL POLICIES AND HOUSING CYCLES: EXPLORING THE NEXUS IN TURKEY %A Ali Doğruel , Umurcan Polat %T MONETARY, MACROPRUDENTIAL POLICIES AND HOUSING CYCLES: EXPLORING THE NEXUS IN TURKEY %D 2016 %J Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi %P 2587-2672- %V 37 %N 2 %R doi: 10.14780/iibd.00004 %U 10.14780/iibd.00004
ISNAD Doğruel, Ali , Polat, Umurcan . "MONETARY, MACROPRUDENTIAL POLICIES AND HOUSING CYCLES: EXPLORING THE NEXUS IN TURKEY". Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi 37 / 2 (Mart 2016): 233-260 .
AMA Doğruel A. , Polat U. MONETARY, MACROPRUDENTIAL POLICIES AND HOUSING CYCLES: EXPLORING THE NEXUS IN TURKEY. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi. 2016; 37(2): 233-260.
Vancouver Doğruel A. , Polat U. MONETARY, MACROPRUDENTIAL POLICIES AND HOUSING CYCLES: EXPLORING THE NEXUS IN TURKEY. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi. 2016; 37(2): 233-260.
IEEE A. Doğruel ve U. Polat , "MONETARY, MACROPRUDENTIAL POLICIES AND HOUSING CYCLES: EXPLORING THE NEXUS IN TURKEY", , c. 37, sayı. 2, ss. 233-260, Mar. 2016, doi:10.14780/iibd.00004