An Econometric Approach to Assess the Impact of Negative Interest Rate Policy (NIRP) on Real Estate Price Inflation in the Eurozone

Contemporary economists argue that negative interest rate as an unconventional monetary policy helps stimulate economic growth. The European Central Bank (ECB) entered Negative Interest Rate Policy (NIRP) territory in June 2014, when it lowered its deposit rates to below zero levels, making the first major central bank adopt such policy. In contrast, NIRP can have effects on certain sectors, property and housing. This paper highlights of real estate price inflation inside Eurozone. relationship between house index, rates, government deficit, unemployment rate, nominal unit labor cost is addressed analyzed. Two main hypotheses were adopted i.e., determine direct Deposit House Price Index, indirect Price. Furthermore, econometric model utilized sort out impact real-estate outcome shows a strong with acting confounding variables.