The Impact Of The Money Supply On The Housing Price In The Capital Cities Of Central Six Provinces

Broad money supply in China reached ten billion yuan in 2013 for the first time,whose the balance and the growth is to the top of the world,and then kept steady growth.At the same time,China's real estate market prices are rising rapidly.Many cities real estate prices has gone far beyond the affordability of the residents,and the capital of the six provinces in central cities housing prices in 2016 have appeared in the round of new highs.The increase in the money supply,through the financial accelerator has effect to enlarge the market,thus too much money,can use different channels to enter the real estate sector.The rapid growth of the money supply is the most important reason to boost the real estate market prices are soaring.This article summarized the research of domestic and foreign scholars research on how money supply can affect the real estate market prices.On the basis of related literature,this article can come to the probably consistent research conclusion,namely the increase in the money supply will cause real estate prices to rise.This text set about from the division of the money supply,to the different functions of money supply indicators,to make a research on how China's money supply structure is influential capital cities housing prices in the six provinces in central,and also concrete which part of the money supply cause changes in the prices.By combing monetary mechanism analysis of the impact of housing supply structure,combined with the related data,this paper found that the capital of the six provinces.in central cities prices rising rapidly during nearly 10 years,and combining the money supply indicators,the paper found that the change trend of both is the same.Finally,combining the measurement model and data analysis,the VAR model is used to obtain the results of quantitative analysis,and the relevant policy Suggestions are given accordingly.The research on the impact of money supply on housing price is an old topic.This paper innovatively focuses on the different parts of money supply and locks the research object into the capital city of the central six provinces.According to the research of this paper,the rise of the capital of the six provinces of central city house prices,a sharp increase in money supply is the main reason,therefore control housing prices must be strict controls of monetary growth,match again other policies,promote the real estate market return to rationality.But specific to each city,the money supply cause of rising prices is not the same,it has to do with the local economic development level,population and other factors,so the city control housing prices still need to "adjust measures to local conditions",combining with the money supply,reasonable collocation other measures.