A Study Of Transmission Mechanism Of Monetary Policy Through Real Estate Price In China

The real estate industry showed a continuous prosperity of the state in our country from2000to the present, the growth of the real estate investment cause the GDP growth of about2%eachyear. Although the real estate industry has become the pillar of our national economy, thedevelopment of overheating and excessive has a negative impact on the society and economy fromthe macro and micro. The development of the real estate market broadens the scope of themonetary policy and makes it difficultly to implementing monetary policy. So there is somepractical significance to research the China’s currency monetary policy conduction effect throughthe real estate prices.In this paper, we’ll study China’s monetary policy conduction effect through real estate priceand analyze the monetary policy transmission mechanism of qualitatively and quantitatively onthe basis of existing document. It first analyzed theoretically how the monetary policy works onthe real economics through the transmission mechanism of real estate price. After that it use themodel of Johansen co-integration test and error correction model, impulse response functions andvariance decomposition analysis and other methods to research the China’s transmissionmechanism of monetary policy through real estate price. From the empirical analysis results itshows that monetary policy can control the real estate price in our country but the transmissionmechanism through real estate price is not a perfect mechanism in the overall effect. Finally, onthe basis of the study, this article indicates the obstacles in the transmission mechanism ofmonetary policy through real estate price in China and proposes appropriate countermeasures...