Ray, Sugata; Mishkin, Frederic S. - 2007
e
– π
e
}, where π
e
is the expected inflation rate:
uc = ph [{(1-t)i - π
e
} - {π
h
e
– π
e
} + δ … the demand for housing because, in effect,
the higher expected inflation tilts the real stream of interest payments to … inflation
2007 2008 2009 2010 2011
-1.5
-1.0
-0.5
0.0
0.5
-1.5
-1.0
-0.5
0.0
0.5
percent deviation
Real …