Abstract
Loose monetary policy is one of the causes of the housing bubble’s burst. The relationship between monetary policy andthe housing bubble is the main topic of this essay. Through analyzing economists’ opinions, collecting data and makingregression, and evaluating the cause of the housing bubble on my own, this essay concludes that monetary policy isnot the main cause. In this essay, I consider the relationship comprehensively. I first select and evaluate two works ofliterature with different views about the relationship between the housing bubble and monetary. Then in the discussionpart, I draw on both ideas and find other arguments to draw my conclusion. This essay announces that the housingbubble is affected by various factors, and monetary policy is just one of them.
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