A Study On The Effects Of Monetary Policy Regulating Real Estate Prices In China

Since the second half of the year 2003, the continuous rising of the real estate prices, which has far-reaching impacts for the macroeconomic and people's living, has been paid much universal attention in China. Through analyzing the effect of the conduction mechanism, combined with empirical study, this paper tells how does monetary policy control real estate prices, and reveals the reasons why monetary policy did not control it obviously, and then proposes some valuable policy suggestions.The studying background and significance of this article are elaborated firstly, and then the relevant literatures on the effectiveness of monetary policy to regulate and control the real estate prices in China are briefly reviewed in the introduction part.The whole paper(excepting introduction and conclusion) is divided into six parts.Part I introduces the current development and characteristics of the real estate prices in China.Part II analyzes the mechanism for regulating the real estate prices through currency and credit channels.Part III expounds the main monetary policies which are useful for regulating the real estate prices since China's housing reform in 1998, and explores the general effect of the monetary policy on the real estate prices through the conduction mechanism.Part IV analyzes the limited effect of the monetary policy regulating the real estate prices in China through empirical analysis and make the conclusion: monetary policy could regulate the real estate price according to the prediction of real estate market; monetary policy fails to control the real estate price and it alone can not be used to control prices.In light of China's actual situation, Part V explores the problems existing in the process of the monetary policy regulating the real estate prices in China, such as the conduction of monetary policy is hampered, the role of the monetary policy to play is limited, and the ability of monetary policy is reduced to control the real estate prices. All of which affect the monetary policy to regulate the real estate prices successfully.Above all, Part VI gives some policy suggestions in order to enhance the effect of the monetary policy regulating the real estate prices.