A Study On The Effects Of Monetary Policy Regulating Real Prices

In recent years, the real estate market gained fast development, especially in a largenumber of developed countries; the real estate industry has become a pillar industry ofthe country, making great contribution to the development of national economy. But theyhave to see the overheating real estate industry also brought a lot of negative effects. TheUnited States plays a leading role on the world economy,its open market economy laid asolid foundation for the vigorous development of the real estate market, but at the sametime, the fully market economy environment has also increased the difficulty of thecontrol of the government. Therefore, how to maximize the effectiveness of monetarypolicy in the real estate market, become a problem that have to be solved. This paper istrying to make empirical research using international data, comparing the difference ofmonetary policy in the real estate market and analyzing the influential factors, andeventually provide policy suggestions to improve monetary policy effect in China’s realestate market.The author settled the existed literature.And on that basis, summarized three mainmonetary policy transmission ways to the real estate market. Then, quoted the quarterlydata from2000to2010of America, Japan, Europe and China made empirical research.The M2and R represents the monetary policy, the housing sales price index P representsthe real estate market. Through the correlation ADF test, Johansen inspection, Grangertest, VAR model and impulse response analysis, concluded that monetary policy effect inthe real estate market are difference.On this basis, the author compared the situations of the four economies in thenational prosperity, urbanization level, the perfect degree of housing financial market, thecentral bank’s independence, the government behavior and the regional differences.Analyze their effect to the monetary policy of the real estate market. Then, put forwardseveral suggestions to improve the effect, including: keeping fast but steady economicgrowth, accelerating the finance diversification inform of the real estate market,strengthening the supervision of real estate financial market, correcting the governmentbehavior and formulating the regional features to make monetary policy, strengtheningthe central bank’s control power, etc.