In November of 2010, the US Central Bank, the Federal Reserve, embarked on a policy of quantitative easing. Since this policy essentially represents an increase in the supply of money, it may create inflationary expectations. Let’s assume (and this is a strong assumption), that as a result of this polic y, US households start to expect inflation (price increases) in the housing market. The effect on the housing market will be:

In November of 2010, the US Central Bank, the Federal Reserve, embarke

1.	In November of 2010, the US Central Bank, the Federal Reserve, embarked on a policy of quantitative easing. Since this policy essentially represents an increase in the supply of money, it may create inflationary expectations. Let’s assume (and this is a strong assumption), that as a result of this polic y, US households start to expect inflation (price increases) in the housing market. The effect on the housing market will be:
Answer» In November of 2010, the US Central Bank, the Federal Reserve, embarked on a policy of quantitative easing. Since this policy essentially represents an increase in the supply of money, it may create inflationary expectations. Let’s assume (and this is a strong assumption), that as a result of this polic y, US households start to expect inflation (price increases) in the housing market. The effect on the housing market will be:

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