Several regulatory powers and fiscal tools of central banks can affect house prices . One such tool , the reserve requirement on banks , which is usually used to control the supply of money when it is increased , can reduce the amount of money that can be lent by banks for housing or businesses . A tight money policy can lead to lesser credit availability and thus , higher interest rates . Meanwhile , a more relaxed monetary policy does the opposite . Cameron , Muellbauer Murphy (2006 ) note...











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