Research On The Influence Of Monetary Policy On Housing Prices In Wuhan

In 1998,China's real estate industry experienced important changes in history,implementing the reform of the housing system and realizing the commercialization and monetization of housing.After this,China's real estate industry has experienced rapid development and house prices have continued to rise.The real estate industry plays an important role in the rapid development of our national economy.However,with the increase in the proportion of the real estate market in China's economic growth,it has also contributed to the growth of the real estate market bubble.As the largest city in the Central China,Wuhan has a unique capacity for population absorption.In recent years,housing prices in Wuhan have experienced an explosive growth.In 2016,the volume of commercial housing in Wuhan reached 261898,ranking first in the country.one.As one of the important means for the central government to regulate China's macro economy,monetary policy also plays an important role in the regulation of the real estate industry.This article combines the evolution of monetary policy and the development of the real estate market,divides into five stages and compares the development of the overall real estate industry in the country and the real estate industry in Wuhan,and focuses on real estate in Wuhan under the control of different monetary policies.The development of the industry was further analyzed.Based on the research of theory and status quo,we select specific indicators and data that can represent the monetary policy and the development of the real estate industry in Wuhan,and use the VEC model to conduct empirical tests and analysis.The empirical results show that monetary policy has a certain degree of regulation and control effect on housing prices in Wuhan.In the long-term,the loan balance of financial institutions has the most significant adjustment effect on the price of commercial housing in Wuhan,followed by the control effect of the interest rate on medium and long-term financial institutions,and the statutory deposit reserve ratio.The weakest regulatory effect.Finally,based on the empirical results and the status quo of Wuhan's development,related recommendations were made to strengthen the monetary policy's effect on the regulation of housing prices in cities at provincial and municipal levels.