주택가격과 통화정책 및 조세정책의 관계

The Effects of Monetary Policy and Tax Policy on Housing Prices in Korea

Purpose This paper investigates the effects of monetary policy and capital gains tax policy on housing prices in Korea. Design/Methodology/Approach The study employed SVAR (Structural Vector autoregression) based the impulse response function as well as the variance decomposition analysis. Findings According to the results of the impulse response function, it was found that the interest rates, reflecting Korea’s monetary policy, have had significantly decreasing effects on housing prices. On the other hand, the stricter policy of capital gains taxes have shown significantly increasing effects on housing prices. Research Implications Thus, this study suggests that, in order to achieve financial stability in addition to inflation stability, the central bank needs to consider housing prices in a monetary policy framework. Also, this study implies that even stricter policies for capital gains taxes could result in instability in housing prices through a lock-in effect in the housing supply.