ABOUT BOOK

This contribution attempts to provide theoretical propositions and empirical evidence on the ‘obscure’ relationship between current account imbalances and house prices. We propose a theoretical framework, which studies the interaction between house prices and current account imbalances and also pays special attention to the role played by fiscal and monetary policies. In a second stage of this contribution, our theoretical framework is estimated empirically by using data from 17 OECD economies, which spans the period 1970-2013. In doing so, the least squares technique with breakpoints is employed.This is the author accepted manuscript. The final version is available from Wiley via http://dx.doi.org/10.1002/ijfe.152