The Study Of Monetary Policy's Effectiveness On The Regulations To The Real Estate Prices In China

Since the second half year of 2003, the continuous rising of the real estate prices has been paid much more universal attention in China. This article tried through the empirical study analysis method to solve the issue whether the monetary policy especial the selective monetary policy can regulate and control the real estate prices.First, in the introduction part, elaborated the study's backgrounds and significances of this article, and then briefly reviewed the relevant literature on the effectiveness of monetary policy to regulate and control the real estate prices in China.Next, introduced the current development of the real estate market in China: on the basis of the analysis of the current operational characteristics of the real estate market prices, the conclusion is: the development of China's real estate market is "irrational prosperity," and then summed up its generated sources.Once more, analyzed the general monetary policy (as a total quantity policy) and the selective monetary policy (as a structure policy)'s effectiveness on the regulations of the continuous rising of the real estate prices separately. In the studies of the general monetary policy: analyzed the effectiveness of the interest rate policy to regulate and control the real estate prices, and then revealed the inner links between the real estate prices and several important macroscopic economical variables such as CPI, currency supply, GDP and so on. In the studies of the selective monetary policy: focused on the significant implications of the real estate credit control and preferential interest rates on the real estate prices.Finally, In light of China's actual situation, summarized our country's Central Bank's experience lessons on the regulations of the real estate prices, and then from the Central Bank's angle, explored some policy suggestions.The final conclusions are that the use of the general monetary policy to regulate and control the real estate prices is virtually ineffective in the short term, because the general monetary policy isn't targeted well and usually has a larger time lap; but the selective monetary policy can solve the issue to a certain extent, and this regulation and control method is more targeted, flexible and effective with the help of other regulations.