OECD research found a high correlation across countries between the degree to which a nation's interest rate was below its estimated Taylor-rule level and the size of its housing boom, including Spain and Ireland — providing evidence that the loose-money-causes-housing-boom mechanism works globally, not just in the US.

factualpending

Speaker

John Taylor

Evidence Quote

some research at the OECD in Paris they looked at OECD countries and they looked at countries whose interest rate was below the Taylor rule as they estimated in two different countries and found an amazingly high correlation between the deviations in the housing price boom

Source

John Taylor on the Financial Crisis 07/20/2009EconTalk
Created: 6/15/2026, 9:20:12 AM

My Notes

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