Research On The Impact Of The Loan To Value On The Financial Assets Price Under The Background Of Monetary And Macro-prudential Policies

In recent years,more and more countries around the world attach importance to the implementation of Monetary and Macro-prudential Policies.More and more countries use loan-to-value ratio(LTV)as a macro-prudential policy tool to cooperate with the implementation of monetary policy.Many scholars have conducted corresponding studies over the years,and affirmed the effectiveness of policy coordination and the regulatory role of LTV on the real estate market.However,the impact of LTV on the price of financial assets has' t been discussed in the researches.In this paper,we construct a dynamic stochastic general equilibrium(DSGE)model for the four sectors of family,enterprise,finance and government,and add relevant contents of financial assets(such as stocks,bonds,etc.)into the existing research system.At the same time,we use the quarterly data of 7-day interbank lending rate,GDP,CPI and other important economic indicators from January 1,2003 to September 30,2018 to refer to the model to estimate the number.It gets impulse response by setting loan-to-value ratio shocks and interest rate shocks,and compares the impact of different loan-to-value ratios.It is concluded that,under the background of Monetary and Macro-prudential Policies,lowering LTV:(1)can reduce the rise of house prices,make house prices stable in the short term,and this restraint is strengthened with the increase of LTV initial value;(2)can improve bond yields.Yield rate and bond price reduction are better than the effect of monetary policy on bond price stabilization,but this effect decreases with the increase of LTV initial value;(3)can reduce the volatility of stock price and make the stock price stable in the short term.The effect of price reduction is not only better than that of monetary policy,but also weakened with the increase of LTV initial value.Overall,LTV can play a role in stabilizing the financial system under the background of Monetary and Macro-prudential Policies,and the implementation effect of LTV in different markets is different.