Monetary Policy Affects Regional Differences In Housing Prices

As the reform of housing system carried out in 1998,the government of China has canceled the welfare housing and implemented monetization of housing distribution,which promoted the marketization of real estate.Afterwards,real estate prices rose continually and the real estate industry went through an unprecedented development,which gradually become the pillar industry of national economy.The high prices have far beyond the ability of many ordinary families,which affected the residents' quality of life and became an unstable factor for steady and rapid economic development.As an important means of macro-economic control and regulation,the monetary policy has played a very important role in the process of regulating the urban commercial housing price.In 2004 to 2007;for example,in the face of overheating social investment and overly fast housing price rising,the government issued a series of tightening monetary policy,such as increasing the legal deposit reserve rate and the bank's benchmark lending rate.However,economic development level of each region is not balanced and the real estate has an immovable property,which makes it a typical regional market.The real estate market supply and demand structure as well as the development level of each region is quite different.Meanwhile,China is in a period of economic transition,the regional economic and financial development is also very uneven.We can see from the actual results that the effects of the same monetary policy varied from region to region.So research on the regional effect of monetary policy on commercial housing price is quite necessary.In such context,this paper attempts to study the regional difference of how a variety of monetary policies have effects on house price,by means of qualitative the oretical analysis and quantitative empirical analysis.This paper first introduces the design and research background,research significance,research methods such as the specific content of the related literatures are reviewed;secondly the regional effect of the regional effect of monetary policy and the impact on prices;and then analyzes the status quo of China's housing prices of the impact of monetary policy on house prices and the theoretical basis of monetary policy;at last on the base of the previous research,the empirical analysis of the regional differences in the first tier and second tier and three line city house prices affect the effect of monetary policy.Finally,the following conclusions are reached: first,the monetary policy has a regional effect on the housing price.Second,the impact of different monetary policy tools on commercial housing prices is different.And puts forward three policy suggestions according to the conclusion: one is the implementation of the tendency of monetary policy,according to local conditions in different regions of the real estate market,give full play to local policies;two is to accelerate the process of marketization,narrowing the regional gap;three is to regulate market behavior,improve the financial system of real estate.