The Impact Of Real Exchange Rate Misalignment On House Prices

In recent years,real estate prices in appeared rising trend in china.In order to curb the rapid rise in prices,the state has launched a series of regulatory measures,but with little success.Throughout the world market,the western countries in the wake of the subprime crisis housing price volatility is more intense.The change radically in the real estate market attracts the academia look.There are many theorists believe that the factors that affect the housing price,this paper attempts from the change of real exchange rate misalignment angle to explaining the housing prices.With the development of global economic integration and financial liberalization,exchange rate is an important tool to guard national economic security and financial stability in the open economic environment.This paper firstly attempts to interpret the change of real estate price from the angle of actual exchange rate,and summarizes the three possible ways of real estate price adjustment based on the analysis of the existing research literature.Secondly,the paper analyzes the effect of real exchange rate offset on the house price from the international experience and the fact of China.We use the data of the world sample panel to empirically analyze the effect of real exchange rate offset on the house price,and use the Chinese time series data to test whether the RMB real exchange rate offset has the same effect on the domestic real estate price.This paper finds that the effect of real exchange rate offset on real estate price presents an inverted u-type effect,that is,the effect of real exchange rate adjustment on the price of real estate is promoted,and the effect of real exchange rate undervaluation on real estate price is not significant.In order to reduce the impact of real exchange rate offset on real estate market,it is necessary to establish and perfect the market mechanism of exchange rate,enrich the hedging instrument of RMB exchange rate,and continuously improve the structure of financial market,strengthen the supervision of cross-border capital flow,and open the capital market in stages.