Regional Differences Of China's Monetary Policy Affecting Real Estate Prices

After many reforms on China's real estate market,it has developed rapidly,real estate investment has been booming,and housing prices have also been steadily rising.Housing prices in some popular cities have made people prohibitive.In the latest report of the 19th National Congress,the idea that houses were used for housing was not used for speculation.Therefore,local governments and central banks also introduced a series of regulatory measures to effectively regulate real estate prices.Monetary policy is important.The macro-control measures have had an important impact on housing prices in this process.Overall,the real estate control policy has played a certain role,but it is not significant,and house prices in first-tier cities like Beijing and Shanghai are still high.Supply is less than the demand for real estate,while some third-and fourth-tier cities have excess supply in the real estate market and insufficient demand.The main reason is that the level of economic and financial development and the level of development of the real estate market in various regions are not balanced.This requires local governments to make decisions based on cities.However,at present,China's monetary policy mainly manifests as a one-size-fits-all model and cannot meet the needs of various regions.Therefore,it is particularly important to analyze the impact of monetary policy on real estate prices from the perspective of the region and make corresponding recommendations.The article first summarized domestic and foreign relevant literature,analyzed the regional effect theory of monetary policy and the theory of monetary policy affecting real estate prices.Second,it examined the development history of the real estate market in the country and the eastern,central and western regions since the reform and opening up,and focused on Analyzes the trend of price changes in real estate prices in each region during the various stages of monetary policy regulation.After clarifying the regional differences in the effect of China's monetary policy on real estate prices,it theoretically demonstrates that the effects of monetary policy on real estate prices are regionally different.On the basis of theoretical analysis and practical investigation,the article conducts empirical analysis.The previous literature uses the traditional East,West,and West method of regionalization.In order to make the research results more effective,select ten indicators and use cluster analysis to divide the area into heights.Well-developed,moderately developed,and less-developed regions,and selecting 2003-2017 quarterly data,using VAR model and impulse response function to conduct empirical analysis,it is concluded that the impact of monetary policy on real estate prices has regional heterogeneity,and interest rate policies are at a high level.The developed region has the best effect,and the credit policy has an overall better effect than the interest rate policy.Lastly,on the ground of above analysis,relevant policy recommendations are put forward,that is,on the basis of a unified monetary policy,we will focus on the differential regulation of real estate prices and coordinate with other policies to promote the healthy development of the real estate market.