Unconventional monetary policy and real estate sector. A financial dynamic computable general equilibrium model for Italy

This study investigates the effects of an expansionary monetary pol- icy on the Italian economy and, in particular, on real estate (RE) as a commodity. RE is a key sector for the Italian economy. It has strong interactions with the other sectors, especially with the financial mar- kets. Therefore, we develop a financial dynamic computable general equilibrium model to analyze the response of RE sector to a shock on money supply. The parameters of the model are calibrated on the financial social accounting matrix for Italy that identifies the eco- nomic and financial flows in the economic system in a well-defined time period. Our findings confirm that the policy has a positive impact n real economy and on the RE output, value added and pricing. .