1. Masters of Illusion.
- Author
-
Clement, Douglas, Schneider, Martin, and Piazzesi, Monika
- Subjects
- *
ECONOMISTS , *HOME prices , *PRICE inflation , *HOUSE buying - Abstract
The article presents information on a research conducted by U.S. Federal Reserve economists Martin Schneider and Monika Piazzesi in which they proposed a solution to the long-term problem of why do home prices increase in both high and low inflation periods. The two economists aim to provide a convincing solution to the historic facts that consumers keep on buying homes in the 1970s even though nominal interest rates were extremely high and do same thing during the 2000s while nominal interest rates are low.
- Published
- 2007