INTERNATIONAL JOURNAL OF PROFESSIONAL STUDIES

The objective of this study is to investigate the ways in which monetary policy has contributed to the containment of real estate bubbles in various regions of India over the course of the last several years. Using Taylor's rule, it was established that monetary policy was too loose in regions where housing values were growing at a rapid rate. This was the conclusion reached. It was determined that the national monetary policy of the Reserve Bank of India (RBI) was appropriate or relatively restricted for some regions, but that it was too liberal for other areas. This occurred in spite of the fact that many areas had diverse economic conditions and policies at the state level, which resulted in the creation of their own unique issues. Following that, a model was developed in order to investigate the dynamics of housing prices in a number of different cities and states on the Indian subcontinent. One of the most significant contributors to the bursting of housing market bubbles and the following inflation of house prices was the relatively loose monetary policy that was implemented in regions that saw high population growth, as shown by the findings. It is imperative that policymakers in India have a comprehensive understanding of the role that money supply plays in averting property market bubbles if India's many regions are to have sustainable economic progress.

Keywords: Monetary; Policy; market; Housing; bubbles