Housing market connectedness and transmission of monetary policy
研究美国地方住房市场之间的关联性如何影响货币政策效果，发现市场同步性越高，货币政策冲击对宏观经济的影响越大，且关联性会放大跨区域溢出效应。
Abstract This paper investigates whether interconnectivity among local housing markets influences the effectiveness of the (United States) U.S. monetary transmission mechanism. We construct measures of housing market connectedness and employ a state‐dependent local projection method to estimate nonlinear impulse responses of macroeconomic variables to monetary policy (MP) shocks. The findings show that MP has a greater impact when regional housing markets are more synchronized. Higher interconnectivity amplifies spillover effects across local markets, enhancing MP effectiveness. Additionally, we find that MP is particularly effective when highly connected states experience economic expansion.