Housing prices rose in the period before the financial crisis. 1. Explain how the Feds pursuit of

Question:

Housing prices rose in the period before the financial crisis.
1. Explain how the Fed’s pursuit of a low federal funds target during the period 2002-2005 led to higher housing prices.
2. Explain how a global savings glut can lead to higher housing prices.
3. Tell which of the two explanations (from #1 and #2, above) John Taylor agrees with and which Alan Greenspan agrees with.