A Study On Transimission Mechanism Of Monetary Policy Through Real Estate Price

Since 2000, the real estate industry showed a continued prosperous state, the real estate price has risen rapidly and became a new economic growth point and the consumer hotspots; but at the same time, it has taken some negative social impacts in both macro and micro-economic aspects, and influenced the economic and society. Since 2003, although we have introduced a series of tightening monetary policy, China's real estate prices are still high, so the effectiveness of monetary policy was questioned. We know that the sensitive and effective monetary policy transmission mechanism is the basis for the successful implementation of monetary policy. So there is some practical significance to research the China's currency monetary policy conduction effect through the real estate prices.In this paper, we'll study China's monetary policy conduction effect through the real estate price, and analyze the monetary policy transmission mechanism of qualitatively and quantitatively on the basis of existing document. The main issue is to work out whether China's monetary policy transmission mechanism through real estate prices is effective. Along this problem, it first analyzed theoretically how the monetary policy works on the real estate prices, and then how the fluctuations of real estate price affect the real economy (consumption and investment). After that it use the model of SVAR, and cointegration analysis, the impulse response function and variance decomposition analysis, to find out the impact and lags of China's monetary policy to real estate price and also the real estate price to the real economy.From the empirical analysis results, it shows that monetary policy have can control to real estate price, and real estate prices can transfer the effects of monetary policy to the real economy, but the overall effect of regulation is not ideal. This article will then analyze the obstacles in the process of China's monetary policy to regulate and control real estate price, and propose appropriate countermeasures.