Bachelor Thesis from the year 2010 in the subject Economics - Case Scenarios, grade: 5.75 von 6, University of St. Gallen, language: English, abstract: This thesis examines whether monetary policy in the United Kingdom during the last 15 years should have reacted more strongly to asset price misalignments in financial assets and real estate assets, and if it should have reacted with different magnitude to the two asset classes. A counterfactual analysis using a dynamic structural general equilibrium (DSGE) model is conducted to test several scenarios, as well as to derive the optimal...