The Analysis Of Monetary Policy Transmission Mechanism Through The Real Estate Prices

As an important means of the state regulation of economy, monetary policy hasan important impact on the real economy. From formulation to play roles affect thereal economy monetary policy has a transmission, the effectiveness of monetarypolicy depends directly on the process of the transmission is smooth or not. And withthe assets of related transactions increased gradually, with the simple inflationindicators to measure the effect of monetary policy regulation effect of rationalityhas been questioned, more and more attentions are putted on the asset price isreasonable or not. In recent years, China’s real estate industry is developing rapidly,the proportion of investment in real estate in the national fixed asset investmentgrows quickly. The real estate industry has become an important pillar industry andplays a decisive role in the development of the economy. The price of real estate hasbecome an important noun of common concern. Therefore, about the regulation andcontrol of monetary policy on the real economy, whether is there a real estate pricechannel? How does the transmission mechanism of this channel run? The channel iseffective and smooth or not? In this context, this paper uses theoretical analysis andempirical analysis to study the monetary policy transmission mechanism of realestate price.Firstly, introduces the theory of monetary policy transmission. Monetary policycould transmit to the real economy through interest rate, exchange rate, credit andasset price channels.Secondly, a theoretical analysis of China’s monetary policy transmissionmechanism of real estate prices. Study the real estate price transmission mechanismin monetary policy transmission in theory. The first part, introduce how the monetarypolicy to regulate and control the real estate prices, through three kinds of meansincluding interest rate, money supply, portfolio effect; the second part, introducehow the price affects the real economy, mainly focus on consumption and investmenteffect. Once again, take the analysis to our country’s monetary policy transmissionmechanism of real estate prices from an empirical point of view. On one hand, do theempirical analysis between the interest rate, the money supply fluctuation and realestate price; on the other hand, do it between the real estate price changes and thelevel of consumption and investment levels. The conclusion is: there is a mechanismfrom monetary policy to the real estate price then to the real economy, but thismechanism exists some obstacles, the effect is not ideal.Finally, based on the empirical conclusions, hindering factors analysis of China’smonetary policy transmission mechanism of real estate price, and propose theoptimization of real estate price transmission path, improve the efficiency of thepolicy recommendations.