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Impacts of monetary policy on housing prices in five emerging economies during the Covid-19 pandemic

Trung Ba Nguyen (Department of Economics, International University, Vietnam National University – Ho Chi Minh City, Ho Chi Minh City, Vietnam)
Chon Van Le (Department of Economics, International University, Vietnam National University – Ho Chi Minh City, Ho Chi Minh City, Vietnam)

International Journal of Housing Markets and Analysis

ISSN: 1753-8270

Article publication date: 25 July 2023

165

Abstract

Purpose

This paper aims to examine the dynamic impacts of the COVID-19 pandemic and government policy on real house price indices in five emerging economies, namely, Brazil, China, Thailand, Turkey and South Africa.

Design/methodology/approach

The authors use the local projection method with a panel data set of these countries spanning from January 2020 to July 2021.

Findings

The number of COVID-19 confirmed positive cases raised housing prices, whereas government containment measures reduced them. Both conventional and unconventional monetary policy implemented by central banks to cope with the COVID-19 helped increase housing prices. These effects were strengthened by the US monetary policy via globalized financial markets.

Originality/value

First, while previous researches typically concentrated on developed countries, the authors investigate emerging economies where proportionally more people were badly affected by the pandemic. Second, a panel data set of five emerging economies enabled the authors to examine the dynamic effects of the COVID-19 crisis on housing prices. Third, to the best of the authors’ knowledge, this is the first study evaluating the influences of easing monetary policy on housing prices in emerging economies during the pandemic.

Keywords

Acknowledgements

The authors acknowledge financial support from the Vietnam National University, Ho Chi Minh City under the research project B2022-28-05.

Conflict of interest: The authors declare that they have no conflict of interest.

Citation

Nguyen, T.B. and Le, C.V. (2023), "Impacts of monetary policy on housing prices in five emerging economies during the Covid-19 pandemic", International Journal of Housing Markets and Analysis, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJHMA-04-2023-0057

Publisher

:

Emerald Publishing Limited

Copyright © 2023, Emerald Publishing Limited

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