Monetary Policy And Regional Real Estate Speculation: A Study On Theory And Demonstration

The paper had researched the relationship between monetary policy and the real estate speculation of the Pearl River Delta by means of theory and demonstration.We did some research on the transmission channels of the monetary policy, especially the estate transmission channels, and found that the credits from banks was the main channel of the monetary policy transmission, which was also the main factor of the speculation of real estate. Than we analysed the different factors on the speculation of the Pearl River Delta by quantitative analysis, validating that the credits from banks was the main factor of the speculation of real estate, but the effect of credit on the speculation of different cities in the PRD were different, it was much more apparent in Guangzhou, Shenzhen and Zhuhai, and then Foshan, Dongguan and Zhongshan, the speculation which caused by over credit in Huizhou, Zhaoqing and Jiangmen were weak.As a result, I think should pay attention to the speculation of real estate in different cities which caused by the loose monetary policy, then take more effective actions to the problem, such as set up regional monetary policy, instead of the same policy in the whole country or province, it would be more helpful to deal with the regional speculation of real estate.