The Impact Of Macroeconomic Policy Of China On Real-estate Price

While the real estate increasingly becomes the important pillar of the national economy, the high housing price becomes an increasingly prominent problem which debase pepoles' normal standard of living and influence the livelihood of the national plan. In the NPC and CPPCC sessions , premier Wen Jiabao promisesed that he would resolve the housing problem during his term of office, ensure the healthy development of the real estate market and reasonable housing price. With a series of macroeconomic policy to be published ,for instance, frequently raising the deposit reserve ratio, increasing the ratio of down payment, would levy property tax in some cities,there is a shaky sign in the real estate market, meanwhile, the waite and see emotion more and more concentrated. With this, this paper main studies the country's macroeconomic policy how to adjust and control the housing price.First, this paper will review the ups and downs of housing price since 1998 when the housing system reform begins. By comparing house price to income ratio in our country to what the internationally recognized, we can realize that the housing price is relatively high in China. Then the paper will analyse the causes which lead the high housing price. First, the excess liquidity in China's banking system leads the fund flow to real estate companies and speculators, which causes the real estate market overheated and high housing price. Use the broad money supply M2 indicate excess liquidity.With M2 as the independent variable and house price as the dependent variable, by empirical analysis ,the paper can prove that excess money supply in circulation have a positive correlation between house price.,which shows that China can adjust housing price through adjusting the money supply in circulation by monetary policy. Second, the house-holder is essentially no tax to pay in holding house section beause China's current tax structure is not perfect ,so a large number of people speculate on housing price at random which further push up housing price. Therefore, it is necessary to adjust the tax structure and increase the level of tax in the link of maintaining house to inhibit the speculators'behavior. Finally, this paper will put forward suggestions from some aspects, such as, resolving the problem of excess liquidity, improving the segment of supplying land, optimizing the housing credit and tax policy, strengthening national policy for the supply of policy-related houses.With all of this ,I hope can contribute on my own to solve the difficult problem of high housing price .