This article examines and reviews extensive arguments and evidence of 97 scientific articles. The analysis should be interpreted as being mainly suggestive since empirical research based on a quantitative analysis was not conducted. Research Design & Methods: The study is completely based on literature research. Furthermore, the article demonstrates the implications of this unconventional monetary policy for the Swiss economy as well as the financial market stability. Objective: The purpose of this study is to present a review of the negative interest rate policy of the Swiss National Bank (SNB) after the outbreak of the financial crisis, in the context of falling real interest rates. Variance decompositions show that SIBOR has considerable explanatory power over the variations of house price index in the long run and SIBOR is the better monetary policy intermediate target variable. Therefore, the results show that SIBOR is an effective monetary policy instrument for the central bank in Saudi Arabia to use to affect housing prices.
Specifically, the results show that SIBOR does Granger cause the housing price whereas, M2 does not Granger cause the housing price. The results show that SIBOR has a stronger impact than M2 on housing prices in Saudi Arabia. The paper examines the impact of monetary policy on the house price index in Saudi Arabia with a VAR model and investigates the Granger causality, impulse response functions, and variance decompositions. The primary purpose of this paper is to determine how the house price index (HPI) in Saudi Arabia is changing under the influence of monetary policy instruments such as money supply (M2) and Saudi Arabia's Short-Term Interest Rate (SIBOR). Meanwhile from the Forecast Error Variance Decomposition shows that the Money Supply, Exchange Rate, and Inflation has a big contribution on the shocks that occur in residential property price index in Jabodebek-Banten in various categories. The responses generated from the Impulse Response Function is different in each category. The results of this study show interest rates and economic growth does not significantly affect residential property price index on Jabodebek-Banten. Macroeconomic variables used in this study such as economic growth, inflation, interest rates, money supply, and exchange rates. With Vector Error Corection Model (VECM) method, this study aims to see what macroeconomic variables influence the Residential property prices index as well as the magnitude of their contribution and how residential property price index respond to macroeconomic shocks. Behind its rapid development, the property business is extremely vulnerable to economic shock. This has a positive impact on the national economy because it can increase the rate of economic growth through the level of investment.
Increased demand has driven the property business to grow and expand more rapidly.
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