Study On The Regional EFFECT Of Monetary Policy Transmission Through Real Estate Price In China

Monetary policy has always been an important means of national economic regulation and control. With the continuous development of China’s monetary policy, monetary policy has become more and more significant in the control of inflation.However, the pressure of inflation is constantly shifting during the continuous development of economy.And it is turning on the stock, real estate and other major asset prices in most countries. The rise of the real estate industry in China is probably around 2003. The rapid development,whichimpliesthe risk, should notbe underestimated. Therefore, the relationship between real estate price and monetary policy in China will become an important issue. It is in this context, the real estate price is conducted as an intermediate conductive factors in the transmission of monetary policy in this paper, basing on the analysis of the monetary policy impact on the price of real estate and the effect of real estate prices on economic growth it analyze effects of real estate prices in the monetary policy transmission process. Besides, taking into account the vast territory of our country, the unbalanced level of economic development and the unbalanced development of the real estate market in different regions, this article will divide china into three major parts of East, middle and West three parts to analyze the impact of regional real estate prices on the monetary policy transmission.So that,it can give a more comprehensive understanding of different impactsof real estate prices on the process of monetary policy transmission in different regions and give more targeted policy suggestions.Based on data from 2003-2014,the paperused VAR model and impulse response function to analyze the impact of interest rates and money supply on the regional real estate price; and used ARDL model to analyze the impact of real estate prices on economic growth in different regions. The results show that the effect of monetary policy on different regions though the real estate price have significant differences.It suggests that the government should adjust measures based on local conditions, relax the authority of local government to make full use of local policies. And each region should relax market regulation, and promote the development of the market.