The Impact Of Monetary Policy On Real Estate Price

Since the implementation of reform and opening up in China, the economy rockets to develop with the real estate industry, which ranks as the main position in national economy development. Since 2000 the fast development of real estate industry has become the mainstream industry. However, due to its high price and larger demand of consumers for the real estate, it has brought deep influence on the social development and habitants' life. Monetary policy controls the economic development, therefore, the implementation of monetary policy in a country impacts profoundly on the development of real estate. For instance, if some expansionary monetary policies such as increasing money supply or decreasing the interest rate are implemented to stimulate the demand of real estate, the consumers'purchasing willings will be improved, which will increase on the price of real estate. Under the circumstance of real estate price surging, Chinese government implements some monetary policies to restrain the soaring price in the real estate, but the achievement is limited, this needs further reasonable monetary policy to guide real estate industry in a sound and healthy development.This thesis conducts analysis theoretically and empirically. It focuses on the analysis of western areas. The theoretical analysis includes transmission mechanism of monetary policy and regional effect of monetary policy.Subsequently, the development of real estate industry in the western China is analyzed in the terms of demand, supply and sales etc. This thesis further compares its difference and investigates reasons for the existing differences. Then the representative city in the west China-Erdos is selected to conduct empirical analysis. The data period is from 2004 to 2015. Firstly it conducts clustering analysis deleting the years of large difference. Then it takes the multi-variable linear return analysis. The dependent variables include deposit reserve, rediscount rate, China inter-bank offered rate, Repo rate, and discount note interest rate. The independent variable is housing price.The last part of this thesis provides conclusions and suggestions.