Download or read book Interactions of Macroprudential and Monetary Policy in an Agent-Based Model of the Housing Market written by Christian Freund and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We explore the interaction of monetary and macroprudential policy in a simple agent-based model of the housing market. Our model shows that the impact of monetary policy on housing market dynamics is smaller than the impact of macroprudential regulation. While both maximum loan-to-value ratios and maximum debt-service-to-income ratios are shown to have a significant impact on the market outcome, the impact of these measures are strongly interdependent. Consequently, individual macroprudential policy measures can not be evaluated individually but need to be analyzed against the full background of monetary policy and other macroprudential regulations in place.