The Research On The Monetary Policy Transmission Mechanism Of The Real Estate Investment

In recent years,the real estate market has contributed a lot to the economic growth and been closer with the whole economy.However,we must also be alert to the troubles of this market.To maintain a stable and healthy condition of the real estate market,our government has introduced relevant policies,including monetary policy,which playing an important role in regulating the macro-economy.In consideration of the significant connection between the real estate market and the whole economy,it is necessary for us to do some research on the influence imposed by the monetary policy.Based on the monetary policy transmission theory,we have studied the transmission channel between monetary policy and the real estate investment by theoretical and empirical analysis.Firstly,by empirical analysis we find that there are some differences from foreign countries in monetary policy transmission mechanism,due to our special economic system.For example,our government still has a control of the deposit and exchange rate.Thus,the interest rate and exchange rate transmission channel may not work out in our country.Then we collect relating macroeconomic data,such as the real estate construction area,the M2 money supply etc.,establish VAR,VECM models and use the relating test to do the empirical study.The empirical results show that credit scale is a medium target of the monetary policy and still under our government's direct control.Credit channel is the major transmission channel of the real estate investment which has a great impact on the investment behavior.A looser monetary policy may contribute to a higher house price,but the price index does not show much evidence for the prediction of the real estate investment.