A Study On Regional Differences Of China’s Money Supply Affect Real Estate Prices

China’s real estate industry has a strong impetus and it is related to its characteristics closely, its development will affect to some extent, the level of China’s economic development. Due to a serious imbalance of China’s real estate market development, leading real estate prices rising too fast, the structure is irrational. In order to stabilize prices, promote the sustained, healthy and stable development of the real estate market, the state has issued a series of macro-control policies, however, most of these policies did not take the characteristics of the real estate market into account fully in the development of regional differences. Therefore, it is particularly important to combine the characteristics of the regional development of China’s real estate-depth study of real estate, start from the People’s Bank of China’s money supply, study the role of research money supply in the process of economic operation of the real estate industry, and put forward policy recommendations.This article is based on the current economic situation, focuses on the reality, and learns from the views and theories of different scholars on the basis of region of China’s "Rule of Thirds" is divided into eastern, central and western, using China’s30provinces and municipalities2000-2010panel data for qualitative and quantitative analysis of regional differences of China’s money supply affect real estate prices, to clarify the impact of China’s money supply on real estate prices and indicate this effect has regional differences. In the long term, there’s a long-term stable equilibrium relationship in eastern, the central and the western real estate prices and monetary supply Changes in money supply will affect the regional real estate prices, which affects the eastern part of real estate prices most, the central less and the western lest. Then, analysis of the reasons of changes on the money supply caused by regional differences in real estate prices, and providing the basis for the development of appropriate policy recommendations. Finally, theoretical and empirical analysis of the previous system based on the proposed sub-regional regulation of real estate prices in China’s relevant policy recommendations, the implementation of differentiated monetary policy, governments around the introduction of effective policies, as well as in combination with other economic policies to reduce regional the difference between real estate prices, and promote the sustained, healthy and stable development of the real estate market.