Empirical Study Of Changes In The Volume Of Money Supply Affect The Price Of Real Estate In The Region

Chinese real estate industry in the national economy is self-evident, and promotethe healthy development of the real estate industry is to improve the level of residentialhousing, to improve the living quality to meet the basic requirements of the people’smaterial and cultural needs; and to promote consumption, expanding consumption andstimulate investment growth, maintaining a strong measure of sustained, rapid andhealthy development; full play to human resources, expanding social employmentfavorable way. But the central bank is facing a difficult regulatory issues, policytightening will cause the funds to other sectors tension easing will push theimplementation of the formation of the real estate bubble, and therefore is how tostrengthen the monetary policy of targeted real estate macro-control focus.And further development of the theory of optimal currency area regionaleconomics began to focus on making our monetary policy regional differences, the hugeamount of China’s economy, but the economic development in all regions with strongdifferences, the central bank’s monetary policy will be displayed in different areas notthe same as the effects of policies. Text in three urban agglomeration as the researchobject, Beijing, Tianjin and Yangtze River Delta economic zone, for example, found thatprices differ between urban agglomerations have linkage effects, but the interactionbetween the various urban agglomeration presents different characteristics.Then useeconometric models empirical research, through the establishment of simultaneousequations to analyze the money supply and the three types of urban real estate pricechanges relationships, compared to the first-tier cities and second-tier cities in responseto changes in the money supply differences, analyzes the line urban housing prices onthe second-tier cities explanatory power.The empirical results show that: the money supply on the first-tier cities havestrong explanatory power, but limited to second-tier and third-tier cities influence.Second-tier cities housing prices by the first-tier cities positive effect, subject to a lack of financing, second-and third-tier cities are more sensitive to credit and third tier citieshousing prices and the money supply in a way no more contact, more affected bysecond-tier impact of urban housing. Therefore, our real estate industry should beregulated in line and focusing on key cities, and the regulation should focus on ways touse second-tier and third-tier cities of monetary policy should focus on the use of fiscalpolicy to increase the construction of affordable housing, to ensure that the basichousing needs of residents.