House prices play a crucial role in how monetary policies affect the economy. A study focused on Japan shows that when house prices go up, so does output and inflation. By using unconventional monetary policies like monetary transfers, the impact on the economy is even greater when house prices rise. Real-world data from Japan confirms that when the government injects more money into the economy, it leads to increased output, inflation, and house prices. This shows that housing prices are a key factor in how monetary policies work, which can help policymakers make better decisions.