Research On The Impact Of Monetary Policy On Real Estate Price In China

After China's housing system reform,the development of the real estate market has made a rapid progress,which has not only greatly improved the housing conditions of residents,but also promoted urbanization construction,playing a vital role in driving the growth of the local GDP and becoming the engine of China's economic development.However,the unreasonable rise of housing price also brings negative effects,which to a large extent affects the stable development of the real estate market.Under such conditions,China's central bank frequently issued monetary policy to curb the unhealthy growth of housing prices.Therefore,the main objective of this paper is to sort out the relationship between monetary policy and real estate prices while providing certain values for economists to further study.This paper evaluated the regulation policies of real estate industry from the start of housing system reform until 2018,and clarified the importance of monetary policy.By dividing the real estate industry and the monetary policies into different periods,this paper analyzed the influence of China's monetary policies on real estate price.First,the influences of monetary policy on the real estate price was analyzed in terms of the whole country based on the VAR model.Next,the panel data method was adopted to obtain the different effects of monetary policies on real estate prices separately in the east,central and western regions of China.The study found that M2 has a positive impact,while interest rate has a negative impact.In addition,there exists regional differences.The impact of quantitative monetary policy on the eastern region is significantly stronger than of the central and western regions,while the price-based monetary policy has the remarkable influence only in the western region.Based on the specific results of the empirical analysis,this paper finally list specific policy suggestions on regional situation,policy tools,policy system and market regulation,in order to give useful references to the development of the real estate:industry in China.