based on the first you need to notice, what are the rules for % rates are derived mainly from the inflationary gap and the unemployment gap (differences between actual values and target values). estimated % rates are derived from "achieving full employment with minimal inflationary pressures". wherein, in fact, % rate has a lot more function (like monetary policy itself) – do not forget about the external sector, financial stability, etc..
also it should be noted, that the application of universal rules for the small open economy and the large open economy and the micro-open economy (for which an independent monetary policy exists only in the case of restrictions on the movement of capital – which already contradicts the idea of an open economy). that's why, before seeing the revealing evidence, it is worth remembering the limited conclusions;)
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monetary policy: according to Taylor's rule and in fact:
Further: "Not high enough" and property prices
Further: "Not high enough" and real estate investments
now surprise: Real % real estate rates and prices
On the one side, it can be argued, what % US rates are setting the architecture of rates around the world, but find a link between the rise in prices in Ukraine and % US rates. Real estate boom in Ukraine – function of the underdevelopment of the financial market, underdevelopment of the real estate market and capital inflows in the banking sector. Capital inflows into our banking sector – it is a function of the rate of increase in raw material prices, which is a function of the growth rate of emerging markets. And the growth rate of emerging markets is leading to …. ouch, excess savings – decrease in long-term % rates in the US and spurring a boom in the real estate sector, which I already find due to securitization, many years of subsidizing the real estate market for the poor and euphoria that is transmitted across borders and restrictions on capital flows…
