Did monetary policy cause a housing bubble in theUS in the first half of the 2000s?

Abstract

Loose monetary policy is one of the causes of the housing bubble’s burst. The relationship between monetary policy and
the housing bubble is the main topic of this essay. Through analyzing economists’ opinions, collecting data and making
regression, and evaluating the cause of the housing bubble on my own, this essay concludes that monetary policy is
not the main cause. In this essay, I consider the relationship comprehensively. I first select and evaluate two works of
literature with different views about the relationship between the housing bubble and monetary. Then in the discussion
part, I draw on both ideas and find other arguments to draw my conclusion. This essay announces that the housing
bubble is affected by various factors, and monetary policy is just one of them.