1)..." that trends in other countries demonstrated a “quite weak” connection between housing price appreciation and monetary policy....
2) ...when historical relationships are taken into account, it is difficult to ascribe the house price bubble either to monetary policy or to the broader macroeconomic environment...
3) ...Regulatory failure, not lax monetary policy, was responsible for the housing bubble and subsequent financial crisis of the last decade"...
I have just 3) "stupid" questions.
1) if the connection between housing bubble and monetary policy were as week as you claim, does not mean housing prices do not respond to sky high interest rates?
2) Indeed, if low interest rate + very lax monetary policy, something you are doing right now, have "weak" connection with housing policy, why are you doing that right now if not to help ALL asset prices stabilize?
3) Would you raise interest rates and put in a tight monetary policy right to stabilize the dollar since in your logic doing so would have "weak" connection with housing prices, and by extension, other asset prices?
Seriously, we know you are defending the Fed for its irresponsible excesses in the past, but please don't insult our intelligence further to start off a new year!
The entire new report is here.