Real Estate Prices In China's Monetary Policy Transmission Mechanism

Since the1990s,under the environment of the housing system reform,enhancement of the inhabitant’s income, and the sustained economic development,Chinese real estate industry has achieved development by leaps and bounds,real eatateinvestment in fixed assets investment in the country high proportion,impact on thelocal economy is becoming more and more significant.The development anddeepening of the real estate market has increased our country monetary policyconduction way, broadened the scope of monetary policy, but it also makes thetransmission mechanism of monetary policy become more complex, to the centralbank monetary policy control and implementation difficulty also will increase.Therefore, research on the transmission mechanism of monetary policy on real estateprices in China, Improve the effectiveness of monetary policy, Promote the benigninteraction between monetary policy and the real estate market, has become animportant topic. Based on the real estate price conduction mechanism of monetarypolicy in our country as the research object, from two aspects of theory and empirical,focus on the analysis of the impact of monetary policy on the price of real estate andreal estate price changes impact on the economy, has a certain theoretical andpractical significance. This can not only enrich the monetary policy of our country intheory, but also provide some policy suggestions for the table and s healthydevelopment, China’s real estate market macro economy.In the analysis of the transmission mechanism of monetary policy on real estateprices in China, this paper is divided into the following three parts: The first is to putforward the problems. It introduces the The article’s research background andsignificance, domestic and foreign related literature review and research ideas andstructures, so as to lay a foundation for the following analysis. The second is toanalyze the problems. The first step is to introduce the current situation and existingproblems of the real estate market in China, and the second step is to theoreticalanalyze all aspects of the monetary policy transmission mechanism of real estate price and the conduction process, that is monetary policy impacts on real estate prices byway of interest rates, exchange rates and asset prices and real estate prices impact onthe real economy through two aspects of consumer spending and investment. Thethird step is based on the theoretical analysis of each link of the conduction process ofempirical analysis, using ADF unit root test, cointegration test and the Grangercausality test methods to conduct in-depth analysis. The last is to solve the problems.According to the above analysis results, the impediments of monetary policytransmission mechanism on real estate prices and the corresponding policyrecommendations were put forward.