콘텐츠 바로가기
로그인
컨텐츠

Category Open

Resources

tutorial

Collection of research papers and materials on development issues

home

Resources
Economy Macroeconomics

Print

Interest rate, inflation, and housing price : With an emphasis on chonsei price in Korea

Related Document
Frame of Image
  • Interest rate, inflation, and housing price
  • Cho, Dongchul
  • National Bureau of Economic Research


link
Title Interest rate, inflation, and housing price
Similar Titles
Sub Title

With an emphasis on chonsei price in Korea

Material Type Reports
Author(English)

Cho, Dongchul

Publisher

Cambridge:National Bureau of Economic Research

Date 2005-01
Series Title; No NBER Working Paper Series / 11054
Pages 43
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Original Format pdf
Subject Economy < Macroeconomics
Holding National Bureau of Economic Research

Abstract

This paper discusses the relationship between interest rate and inflation rate on one part and the house price relative to chonsei price (up-front lump-sum deposit from the tenant to the owner for the use of the property with no additional requirement for periodic rent payments) on the other. The key point of the paper is that the relative price of sales to chonsei depends on the ratio of inflation to real interest rate, and thus even when the monetary authority maintains a pre-announced target level of inflation rate, the relative price of sales to chonsei rises if the real interest rate is lowered. This finding seems to help understand the recent hikes of the house prices despite the stabilizing chonsei prices. (The rest omitted)