The Different Impact Of Unified Monetary Policy On Regional Estate Prices

In1998, China completed the Housing System Reform. Marked the welfare housing system under the planned system is a complete end. The estate become a part of market. After ten years of development, the real estate market is thriving and has become a pillar industry of China’s economic development. However, along with the rapid development of the real estate market, the high prices have become the major issues that affect the national economy and the daily lives of people livingThere are two main stages in the rapid growth of China’s housing prices. The first stage in2004, the countries in order to promote economic growth, foster the real estate industry.The second stage in2008,to deal with the financial crisis the government made the real estate industry as the main pillar industries in China. After two phases of rapid growth, the parts of the real estate market has a lot of foam, the national begin to control the real estate market. Monetary policy as the main means has been agreed by a lot of scholars. But there are still little research about regional issues. In this paper, starting from a regional perspective, try to find the difference in different region where have the same Monetary policy.By collecting literature both at home and abroad,the paper use the OCA theory to proof China is not an Optimal currency area. There are a lot difference between different regions, especially the real estate market. Then the paper describes the status quo of the monetary policy and the real estate market.On this basis, the analysis begin. First, the paper selected35cities as samples, and cluster analysis of the samples for the division of the region. Second, use the panel data to establish a long-term equilibrium model and short-term error correction model. Final conclusion:(1) From a long-term perspective, the government to use monetary policy to control prices is effective. But for different regions, the effect of monetary policy is a huge difference. Economically developed areas, the effect of monetary policy is significantly better than the economically underdeveloped region. Long-term, the impact of money supply on prices very significantly, the role of interest rates on housing prices is small.(2) From a short-term perspective, the monetary policy for price regulation effect is not obvious. Monetary policy in the short-term only have the effect on the most economically developed region. Therefore want to control prices through monetary policy changes in the short term is difficult to do, and this is mainly because the conduction of monetary policy in the real estate market have time lag.(3) The interest rates for real estate prices in the regulation of long-term is non-significant, in short-term significant but effect is very small, the interest rates just like a signposts.(4) The change of income have a big effect on price of undeveloped areas. For the developed areas,effect only appear in short-term...