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The Effects of a Non-traditional Monetary Policy on Housing Prices in Taiwan
Corresponding Author(s) : Hsin-Hong Kang
hhkang@mail.ncku.edu.tw
Humanities & Social Sciences Reviews,
Vol. 3 No. 1 (2015): Vol 3 (1) 2015
Abstract
The well-known “Quantitative Easing” (QE) is a kind of non-traditional monetary policy. The United States and Japan are two typical examples that executed non-traditional monetary policies on a large-scale since 2000s. This research uses multiple regression analysis to examine the effects of non-traditional monetary policies abroad on housing prices in Taiwan. More specifically, the research would like to find out whether the mechanism of monetary transmission could successfully transmit the shocks of external monetary policies to the internal housing market. The empirical result indicates that the four QE factors had inconsistent outcomes. Japan QE and US QE1 are significantly negative related with Cathay housing price index, and while US QE2 and US QE3 are positive related to the index, the results are not significant. There is an inconsistent conclusion among non-traditional monetary policy. Moreover, the government policy is significantly and positively related with index. It indicates that government policy can’t restrain the increasing housing price index. Finally, all of the macroeconomic variables match the research expectation, except for population growth rate.
Keywords
Housing market
Quantitative easing
Housing bubble
Macroeconomic variables.
Kang, H.-H. (2015). The Effects of a Non-traditional Monetary Policy on Housing Prices in Taiwan. Humanities & Social Sciences Reviews, 3(1), 38-41. Retrieved from https://giapjournals.com/hssr/article/view/243
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