A Study On Transmission Effect Of China's Monetary Policy Through Real Estate Price

Under the rapid development of China's economy, the capital market has been more and more mature, and the transmission effect of China's monetary policy through assets'price has been concerned by more and more people. On the other hand, the market of real estate was fast developing and expansion in recent years, which make the price of real estate become a significant factor of livelihood and economy. This article will make a research and discussion about the transmission effect of China's monetary policy through real estate price, and analyze the efficiency of it by theory and Empirical.This paper mainly discusses the two section of the transmission effect of China's monetary policy through real estate price. The first section is the effects of monetary policy on the real estate price, while the second section is the effects of the real estate prices on the real economy. Both of them have a good Conduction in the theory. And in the first section, monetary policy impact on the real estate price, mainly through interest rate, money supply and the income approach, while in the second section, real estate prices mainly through the wealth effects and investment effects of an impact on the real economy. The article then examines the efficiency of the two sections of the transmission effect of China's monetary policy through real estate price, which make different conclusions with theory way.The paper selects the six groups of monthly data during 2001 to 2010 to make an empirical analyst and research on the two sections that is quasi-money,1 year lending interest rate, real estate price index, investment in real enterprises and the Consumer Price Index. The empirical results show that the first section is effective, but the second section is handicap. And then, this paper analysis reasons of the handicap from the part of marketing subject, economy environment and regional differences. What's more, the paper has given some suggestions, including adjustment of monetary policy, development of real estate marketing and policy separation.