Does US Dollar Supply Trigger House Price Fluctuations? An International Comparison

Cyclical fluctuations in asset prices are closely related to the overall stability of the macroeconomy and have thus become a significant topic in academic and professional exploration. Among these fluctuations, changes in the supply of the U.S. dollar, the global reserve, and primary settlement currency have a broad and far-reaching impact on international financial markets. Since COVID-19, asset prices across various countries have shown differing trends due to fluctuations in the U.S. dollar supply. Housing prices, a key focus in asset pricing research, have been affected to varying degrees. This thesis utilizes seven house price indices from representative cities worldwide from 2020 to 2023 to compare the differential impacts across various countries using an empirical approach. The results indicate that the impact of the U.S. dollar money supply (M2) diminishes in a gradient from the U.S. to East Asia, and then to Europe.