Lead supervisor:
Prof Phillip Lawler
Start date: October 2012
Award: General
Subject Pathway:
Economics
Thematic Cluster:
Economy, Enterprise, and Productivity Cluster
Monetary Policy and Housing: Transmission Effects and Policy Implications.
I intend to provide new insights into the channels that policy interest rates affect spending on housing. I postulate that changes in monetary policy have had a large impact on mortgage refinancing in many developed countries over the last twenty years. This in turn affected the value of securitised mortgage products, which became a significant source of funding for mortgage lending. I plan to use special VAR simulations to show how variables such as mortgage refinancing, securitisation issuance and residential investment respond to a one-standard deviation shock to policy interest rates set by central banks.