The housing as a source of constraints for the monetary policy from Romania
Keywords:
Central banks’ popularity;
Abstract
The housing market could interact with the monetary policy in several ways. This paper approaches the situation of Romania where the national currency depreciation or the interest rates raise provoked, in the past, virulent reactions of the mortgage debtors. In these circumstances, the central bank has to take into consideration, when deciding, the potential impact on housing market.
References
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10. Calza, A., Monacelli, T. and Stracca, L., 2013. Housing finance and monetary policy. Journal of the European Economic Association, 11(s 1), pp. 101-122.
11. Castells, M., 2000. Toward a sociology of the network society. Contemporary sociology, 29(5), pp. 693-699.
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13. Chadwick, A., 2017. The hybrid media system: Politics and power, Second Edition. Oxford University Press, Oxford.
14. Cloyne, J., Ferreira, C. And Surico, P., 2020. Monetary policy when households have debt: new evidence on the transmission mechanism. The Review of Economic Studies, 87(1), pp. 102-129.
15. De Grauwe, P. and Schnabl, G., 2004. EMU entry strategies for the new member states. Intereconomics, 39(5), Springer, Heidelberg, pp. 241-246.
16. De Melo, M. and Denizer, C., 1997. Monetary Policy during Transition: An Overview. World Bank Publications, Policy Research Working Paper 1706.
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19. Friedman, M., 1962. Should There Be an Independent Monetary Authority? in L. B. Yeager (ed.), In Search of a Monetary Constitution Harvard University Press, pp. 219-243.
20. Garriga, C., Kydland, F. E. and Šustek, R., 2017. Mortgages and monetary policy. The Review of Financial Studies, 30(10), pp. 3337-3375.
21. Goodhart, C. and Lastra, R., 2017. Populism and central bank independence. Open Economies Review, 29, pp. 49-68.
22. Hegedüs, J., Horváth, V., and Lux, M., 2018. Central and East European Housing Regimes in the Light of Private Renting, in Hegedüs, J., Lux, M. and Horváth, V. (eds.). Private Rental Housing in Transition Countries, Palgrave Macmillan, London, pp. 387-411.
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24. Kočenda, E., Kutan, A. M., and Yigit, T. M., 2006. Pilgrims to the Eurozone: How far, how fast?. Economic systems, 30(4), pp. 311-327.
25. Leeper, E. M., 1991. Equilibria under ‘active’and ‘passive’monetary and fiscal policies. Journal of Monetary Economics, 27, pp. 129-147.
26. Masciandaro, D. and Passarelli, F., 2019. Populism, Political Pressure and Central Bank (In) dependence. Open Economies Review (31), pp. 691-705.
27. McCallum, B. T., 1996. Crucial Issues Concerning Central Bank Independence. NBER Working Paper No. 5597, [online] Available at:
28. Melitz J., 2002. Debt, deficits and the behavior of monetary and fiscal authorities, in Marco Buti, Jürgen von Hagen and Carlos Martinez-Mongay (eds.), The behavior of fiscal authorities – Stabilization, growth and institutions, Palgrave Macmillan, London, pp. 215–40.
29. Mishkin, F. S., 2007. Housing and the monetary transmission mechanism. NBER Working Paper No. 13518, [online] Available at:
30. Renaud, B. M., 1996. Housing finance in transition economies: the early years in Eastern Europe and the Former Soviet Union. The World Bank Policy Research Working Paper Series No. 1565, [online] Available at:
31. Rinaldi-Larribe, M. J., 2008. Is economic convergence in New Member States sufficient for an adoption of the Euro?. European Journal of Comparative Economics, 5(2), pp. 133-154.
32. Rosenhek, Z., 2013. Diagnosing and explaining the global financial crisis: Central banks, epistemic authority, and sense making. International Journal of Politics, Culture, and Society, 26(3), pp. 255-272.
33. Sargent, T. J. and Wallace, N., 1981. Some unpleasant monetarist arithmetic. Federal Reserve Bank of Minneapolis Quarterly Review, 531.
34. Stanilov, K.. 2007. Housing trends in Central and Eastern European cities during and after the period of transition. In Stanilov, K. (ed.) The post-socialist city, Springer, Dordrecht, pp. 173-190.
35. Tsenkova, S., and Polanska, D. V., 2014. Between state and market: housing policy and housing transformation in post-socialist cities. GeoJournal, 79(4), pp. 401-405.
36. Wagner, H., 2000. Central banking in transition countries. Eastern European Economics, 38(4), pp. 6-53.
37. Wagner, H., 2010. The causes of the recent financial crisis and the role of central banks in avoiding the next one. International Economics and Economic Policy, 7, pp. 63-82.
38. Zoli, E., 2005. How does fiscal policy affect monetary policy in emerging market countries?. BIS Working Papers No. 174, [online] Available at:
2. Alesina, A. and Summers, L. H., 1993. Central bank independence and macroeconomic performance: some comparative evidence. Journal of Money, Credit and Banking, 25(2), pp. 151-162.
3. Aoki, K., Proudman, J. and Vlieghe, G., 2004. House prices, consumption and monetary policy: a financial accelerator approach, Journal of Financial Intermediation, 13(4), pp. 414-435.
4. Aslund, A., 2013. How capitalism was built: the transformation of Central and Eastern Europe, Russia, the Caucasus, and Central Asia, Second Edition. Cambridge University Press, New York.
5. Beblavy, M., 2007. Issues and Problems Related to Eurozone Entry of the New Accession Countries: An Analytical Review. In Cobham D. (Ed.). Travails of the Eurozone: Economic Policies, Economic Developments, Palgrave Macmilan, New York, pp. 271-292.
6. Blanchard, O. J., 1997. The economics of post-communist transition. Clarendon Press, Oxford.
7. Blinder, A. S., 2012. Central bank independence and credibility during and after a crisis. Griswold Center for Economic Policy Studies Working Paper No. 229, [online] Available at:
8. Brown, M. and De Haas, R., 2010. Foreign currency lending in emerging Europe: bank level evidence. European Banking Center Discussion Paper No. 2010-31, [online] Available at:
9. Buchanan, J. M. and Wagner, R. E., 1977. Democracy in deficit: The political legacy of Lord Keynes. Academic Press, New York.
10. Calza, A., Monacelli, T. and Stracca, L., 2013. Housing finance and monetary policy. Journal of the European Economic Association, 11(s 1), pp. 101-122.
11. Castells, M., 2000. Toward a sociology of the network society. Contemporary sociology, 29(5), pp. 693-699.
12. Cecchetti, S. G., 2008. Monetary policy and the financial crisis of 2007-2008. CEPR Policy Insight, 21.
13. Chadwick, A., 2017. The hybrid media system: Politics and power, Second Edition. Oxford University Press, Oxford.
14. Cloyne, J., Ferreira, C. And Surico, P., 2020. Monetary policy when households have debt: new evidence on the transmission mechanism. The Review of Economic Studies, 87(1), pp. 102-129.
15. De Grauwe, P. and Schnabl, G., 2004. EMU entry strategies for the new member states. Intereconomics, 39(5), Springer, Heidelberg, pp. 241-246.
16. De Melo, M. and Denizer, C., 1997. Monetary Policy during Transition: An Overview. World Bank Publications, Policy Research Working Paper 1706.
17. Dumitriu, R. and Stefanescu, R., 2020. Iluzii financiare, Partea întâi, [online] Available at:
18. EBRD, 2010. Transition Report 2010: Recovery and reform, European Bank for Reconstruction and Development, [online] Available at:
19. Friedman, M., 1962. Should There Be an Independent Monetary Authority? in L. B. Yeager (ed.), In Search of a Monetary Constitution Harvard University Press, pp. 219-243.
20. Garriga, C., Kydland, F. E. and Šustek, R., 2017. Mortgages and monetary policy. The Review of Financial Studies, 30(10), pp. 3337-3375.
21. Goodhart, C. and Lastra, R., 2017. Populism and central bank independence. Open Economies Review, 29, pp. 49-68.
22. Hegedüs, J., Horváth, V., and Lux, M., 2018. Central and East European Housing Regimes in the Light of Private Renting, in Hegedüs, J., Lux, M. and Horváth, V. (eds.). Private Rental Housing in Transition Countries, Palgrave Macmillan, London, pp. 387-411.
23. IMF, 2006. De facto Classification of Exchange Rate Regimes and Monetary Policy Framework, International Monetary Fund, Washington, DC, [online] Available at:
24. Kočenda, E., Kutan, A. M., and Yigit, T. M., 2006. Pilgrims to the Eurozone: How far, how fast?. Economic systems, 30(4), pp. 311-327.
25. Leeper, E. M., 1991. Equilibria under ‘active’and ‘passive’monetary and fiscal policies. Journal of Monetary Economics, 27, pp. 129-147.
26. Masciandaro, D. and Passarelli, F., 2019. Populism, Political Pressure and Central Bank (In) dependence. Open Economies Review (31), pp. 691-705.
27. McCallum, B. T., 1996. Crucial Issues Concerning Central Bank Independence. NBER Working Paper No. 5597, [online] Available at:
28. Melitz J., 2002. Debt, deficits and the behavior of monetary and fiscal authorities, in Marco Buti, Jürgen von Hagen and Carlos Martinez-Mongay (eds.), The behavior of fiscal authorities – Stabilization, growth and institutions, Palgrave Macmillan, London, pp. 215–40.
29. Mishkin, F. S., 2007. Housing and the monetary transmission mechanism. NBER Working Paper No. 13518, [online] Available at:
30. Renaud, B. M., 1996. Housing finance in transition economies: the early years in Eastern Europe and the Former Soviet Union. The World Bank Policy Research Working Paper Series No. 1565, [online] Available at:
31. Rinaldi-Larribe, M. J., 2008. Is economic convergence in New Member States sufficient for an adoption of the Euro?. European Journal of Comparative Economics, 5(2), pp. 133-154.
32. Rosenhek, Z., 2013. Diagnosing and explaining the global financial crisis: Central banks, epistemic authority, and sense making. International Journal of Politics, Culture, and Society, 26(3), pp. 255-272.
33. Sargent, T. J. and Wallace, N., 1981. Some unpleasant monetarist arithmetic. Federal Reserve Bank of Minneapolis Quarterly Review, 531.
34. Stanilov, K.. 2007. Housing trends in Central and Eastern European cities during and after the period of transition. In Stanilov, K. (ed.) The post-socialist city, Springer, Dordrecht, pp. 173-190.
35. Tsenkova, S., and Polanska, D. V., 2014. Between state and market: housing policy and housing transformation in post-socialist cities. GeoJournal, 79(4), pp. 401-405.
36. Wagner, H., 2000. Central banking in transition countries. Eastern European Economics, 38(4), pp. 6-53.
37. Wagner, H., 2010. The causes of the recent financial crisis and the role of central banks in avoiding the next one. International Economics and Economic Policy, 7, pp. 63-82.
38. Zoli, E., 2005. How does fiscal policy affect monetary policy in emerging market countries?. BIS Working Papers No. 174, [online] Available at:
Published
2022-05-15
How to Cite
Dumitriu, R. (2022). The housing as a source of constraints for the monetary policy from Romania. Vanguard Scientific Instruments in Management, 16. Retrieved from https://vsim-journal.info/index.php?journal=vsim&page=article&op=view&path[]=250
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