To try to assess the importance of that possible contribution, in the remainder of my remarks I will consider briefly two related questions. First, the cumulative increase in housing prices shown in Slide 5 is quite large. Can accommodative monetary policies during this period reasonably account for the magnitude of the increase in house prices that we observed?
Among the important instruments used by central banks for this purpose is the “forward guidance” they give in their monetary policy statements. 25. The practice of giving forward guidance varies across central banks.