Interestingly, essentially all of these countries had monetary policies easier than that prescribed by the Taylor rule, as shown by the fact that every country is situated on or to the left of the vertical axis in the figure. 17 As Slide 9 shows, the relationship between the stance of monetary policy and house price appreciation across countries is quite weak.
For example, 11 of the 20 countries in the sample had both tighter monetary policies, relative to the standard Taylor-rule prescriptions, and greater house price appreciation than the United States. The overall relationship between house prices and monetary policy, shown by the solid line, has the expected slope (tighter policy is associated with somewhat slower house price appreciation).