ABSTRACT
This paper deals with the topic of price bubbles in the Czech real estate market. The paper lists ways of identifying the bubbles in the real estate market via relative measures and econometric models. Econometric models are used to analyze particular factors that influence the development of apartment prices in the Czech Republic. Emphasis is placed on the influence of interest rates on asset prices, since low inflation and expansive monetary policy can create conditions for the formation of a price bubble.
Keywords
housing prices, asset bubbles, interest rate, low inflation, expansionary monetary policy, regression.