Homework answers / question archive / Discuss the channels by which the property price bust may have implications for macroeconomic variables of interest to policy makers (for example, output, unemployment, the exchange rate, and the current account balance)

Discuss the channels by which the property price bust may have implications for macroeconomic variables of interest to policy makers (for example, output, unemployment, the exchange rate, and the current account balance)

Economics

Share With

Discuss the channels by which the property price bust may have implications for macroeconomic variables of interest to policy makers (for example, output, unemployment, the exchange rate, and the current account balance). Do you think that the current fiscal and monetary policy stances are appropriate to tackle the issues? What policies would you recommend going forward, and what are the potential drawbacks of these policies? (You can assume that property prices will continue to decline for the next 2-3 years.)