Real Estate Price And Monetary Policy

This Thesis focuses on the interplay mechanism between the real estate prices and monetary policy and also the challenges that the fluctuation of real estate price brings to the monetary policy. It aims to basically answer the question of whether asset price should be the target of the monetary policy and whether we could come up with a monetary policy framework that takes into consideration the real estate price factor. With the study methodology of combining the micro analysis and macro analysis jointly and binding the positive analysis and the normative analysis together, it conducts researches on the relationship between the real estate price and monetary supply & demand and also the interrelations between the real estate price and inflation expectation. Based on the research results hereinbefore it tries to bring the real estate price into the central bank' s monetary policy framework. Finally, the thesis comes to the conclusion that central bank shouldn' t respond to the real estate price fluctuation passively. On the contrary, it should extract helpful information about market inflation expectation from the fluctuation of real estate price actively, formulate relevant monetary rule and level off the market inflation expectation in order to promote the stability of macroeconomics and finance.