| The healthy development of the real estate market is a matter ofnational economy and people’s livelihood. The U.S. real estate pricefluctuations caused the subprime crisis which brings a huge impact on theglobal economy. The crisis spreads from the financial market to the realeconomy and entire world, and causes people to panic. The fluctuation ofhousing price has become the focus of the people.Real estate is a capital-intensive industry.The development of Realestate cannot leave the financial support. Monetary policy plays a veryimportant role in the development of the real estate, Could monetarypolicy regulate the real estate market effectively? In this paper, theeffectiveness of monetary policy on the housing prices is studied.Whether monetary policy can regulate the housing prices effectivelymeans whether the transmission mechanism of the real estate market onmonetary policy is effective.The previous paper, which study the effectiveness of monetarypolicy on housing price, usually use the VAR model. However, VARmodel has a main drawback that it only can process a few variables. SoVAR model is not able to fully capture the information in the economy,therefore, this paper expounds the building of FAVAR model, includingmodel settings, the extraction of public factors, as well as the impulseresponse function. In this way, the problem of VAR model is solved. In this paper, I collected the macroeconomic quarterly data of ourcounty in the first quarter of2000to the fourth quarter of2009. FAVARmodel is used in analysis of the effectiveness on monetary policy tohousing price. Some conclusions are obtained. Compared with high-gradehousing and economically affordable housing, the price of commonhousing is more sensitive to monetary policy. In our country thetransmission mechanism of the real estate market on monetary policy iseffectively. Monetary policy can effectively control housing price. Curbthe rising of housing prices won’t bring big negative influence toeconomic growth. |
PDF Full Text Request