Plausibly Exogenous [867] - Interest Rates (06/04/2022)

LHS Variable
Mortgage lending and house prices

RHS Variable
Low interest rates

Source of Exogenous Variation
Broadly speaking, when countries peg to some base currency they effectively import the base economy's monetary policy, even if it is at odds with home economic conditions. Exchange rate pegs therefore provide a source of exogenous variation in monetary conditions

- Jorda, Schularick, and Taylor (2015), “Betting the house”