MONETARY POLICY EXPECTATIONS AND BOOM-BUST CYCLES IN THE HOUSING MARKET*

Boom-bust cycles in asset prices and economic activity have been a central issue in policy and aca-demic debates. Particular attention has been given to the behavior of housing prices and housing in-vestment. In the following we document that over the last three decades housing prices boom-bust cycles in the US are characterized by cyclical dynamics in GDP, consumption, investment and housin