Research Real Estate Prices And Monetary Policy Relationship

With the establishment of socialist market economy system, the real estate indusrty rapidly developments for national economy important industrial community and becomes the cornerstone industry of national economy.Under the together function of the housing system reform, the implementation of mortgage loan policy, the enhancememt of the inhabitant's income and the accelerating urbanization, Chinese real estate market has obtained rapid development and deepening.But due to its late starting and imperfect development, our real estate market Presents some typical Basic-level market characteristics , just as some obvious fluxion undulations.During the past few years, Chinese real estate market is mounting existence marketplace maldevelopment , foam-rization degree are higher , the land supplying is not standard , government opportunism behavior is grave, the supply and demand structure unbalance , real estate business are excessive to finance degree of reliance , real estate market order waits for more problem , feasible real estate market to be containing very big financial risks in confusion.Under this situation, the article has launched the analysis and the elaboration on the subject that how to chose the monetary policy tool to promote Chinese real estate market benignity development.This article studies real estate industry deeply through monetary policy , regularizes the alteration in interest rate , required reserves and currency supply level, contacts and this regularization is closely related to period finance monetary policy of real estate industry significantly, deeply study the transmission mechanism of the process that monetary policy variables affect the real estate market and the role it plays, especially the role it plays and the way it works of controlling real estate market price overheat, applies evidence-based research to study and find out the elements that monetary policy works in the real estate industry, and then provide suggestions of monetary policies for developing the real estate industry of our country.The article has three major parts: Part I is about introduction and summary of current situation and problems with current real estate market of our country. Part II is core part of the article. Firstly, this part illustrates the basic theory and transmission mechanism of monetary policy controlling real estate market, and then analyzes the delema of that, and use evidence-based research to the study the impact of rate , deposit and the money supply to the real estate industry. The third part is mainly about the conclusion and policy suggestions. By the previous nature determining and quantitative analysis, it comes to a conclusion: Although monetary policy is able to control house price to some extent, we can not deny that monetary policy can not totally control real estate market because of the compexity and the multiple body of real estate market. Therefore, to promote the beneficial development of real estate market, our country ought to chose monetary policy going along with various policies to control real estate market based on suitably handling the relationship between the government and market from both short-term and long-term aspect.