Owner-Occupied Housing, Inflation, and Monetary Policy

Robert J. Hill; Miriam Steurer; Sofie R. Waltl

doi:10.1111/jmcb.13059

Owner-Occupied Housing, Inflation, and Monetary Policy

Robert J. Hill, Miriam Steurer, Sofie R. Waltl

Urban Development & Mobility

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Résumé

Owner-occupied housing (OOH) is currently excluded from the harmonized index of consumer prices (HICP) in Europe. Using microlevel data for Sydney and aggregated data for the United States, France, and Germany, we compare the impact of alternative treatments of OOH on measured inflation. We recommend including OOH in the HICP using a simplified version of the user-cost method. This would improve the harmonization of the HICP, help close the credibility gap between measured inflation and public perceptions of it, and allow the ECB to lean against a housing boom without departing from its inflation target.

langue originale	Anglais
journal	Journal of Money, Credit and Banking
Les DOIs	https://doi.org/10.1111/jmcb.13059
état	E-pub ahead of print - 13 mai 2023

Une note bibliographique

Publisher Copyright:
© 2023 The Authors. Journal of Money, Credit and Banking published by Wiley Periodicals LLC on behalf of Ohio State University.

Accès au document

10.1111/jmcb.13059

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