An Empirical Analysis Of The Impact Of Money Supply On Real Estate Prices In China

In the past 20 years,China's money supply has been growing fast,broad m oney supply M2 growth rate is far higher than the growth rate of GDP.In 2016,the ratio of broad money supply M2/GDP even reached 250%,Although China's inflation rate has been maintained at a low level,but the rate of housing prices is unusually increasing rapid.,since China's housing reform in 1998,China's real estate industry has become increasingly mature,but the problem still exists,in r ecent years the emergence of nationwide house prices rose too fast,in the first-ti er cities' housing prices even doubled these years,housing prices rose more and more far away from the reasonable range.China's broad money supply growing fast,however inflation rate is low,indi cating that a large amount of money does not flow into the general consumer go ods market.Which can accommodate the amount of money is the financial marke t and the real estate market,but the development of the stock market in recent y ears is not enough to accommodate the amount of money,the real estate market is most likely to become a reservoir of these funds.This paper takes this as the breakthrough point,through consult material,carries on the empirical analysis,e xplores the correlation between them,finally gives the conclusion.This paper first introduces the relevant research literature at home and abroa d,including money supply,gross domestic product,the relationship between gross domestic product and housing prices,money supply has hysteresis effecte on ho using prices,interest rate channel and credit channel impact on housing prices e tc..Then it reviews the real estate development process of 1998-2016 in China,a nd points out the problems existing in the development of real estate in our coun try.And then introduces the theory related to monetary and real estate,next use statistical analysis and empirical analysis and other methods to make an empiric al analysis of the relationship between money supply and housing price.It is foun d that the increase of money supply will lead to the rise of housing price,and t here is a stable relationship between money supply and real estate price.Finally,it is concluded that the money supply has a positive impact on housing prices,t here is a positive correlation between the both,but the impact of the broad mon ey supply on housing prices will weaken with time.At the end of the article,ba sed on the conclusions,the paper gives some suggestions on how to control the rapid rise of house prices from the aspects of policy and economy in order to m aintain a stable and healthy development of the real estate market.