The Dynamic Relationship Between China's Monetary Policy And Real Estate Prices

This article focuses on the development of real estate market,and bases on theoretical and empirical perspectives to explore the impact of China's Monetary Policy on Real Estate Prices,and the dynamic relationship between them.This article summarizes domestic and overseas relevant literatures,and analyzes the development status of China's real estate market,and the influencing factors of Real Estate Prices,and the approach of China's Monetary Policy affecting on Real Estate Prices.It pick Currency Supply and Interest Rate as variables of monetary policies,and also study the dynamic relationship between Monetary Policy and Real Estate Prices,meanwhile,use software to quantitatively analyze variable data,and establish a DCC-MGARCH model to gain the correlation and correlation coefficient of Currency Supply,Interest Rate and Real Estate Price.And it further establish MS-VAR model,and shows that the positive correlation effect of Currency Supply on Real Estate Prices will increase relatively when the real estate market expands;when real estate market is low,the positive correlation effect of money supply on Real Estate Prices will decrease relatively;the correlation between Interest Rates and Real Estate Prices has a time-varying nature,which means the correlation between Interest Rates and Real Estate Prices will also change as time changes,which is sometimes positive and sometimes negative,and when the real estate market is expanding,the impact of Interest Rates on Real Estate Prices will be weakened but not significant;when real estate market is in the doldrums,the impact of Interest Rates on Real Estate Prices will increase,which is still not significant.Finally,based on the above theoretical and empirical analysis,it will play a role in promoting study of the dynamic relationship between China's Monetary Policy and Real Estate Prices in the future.At the same time,based on empirical research conclusions,relevant specific policy recommendations are proposed for the central bank or government to formulate the Monetary Policy and macroscopically control Real Estate Prices.