Research On The Effect Of China’s Monetary Policy To Regulate Real Estate Price

Real estate industry start monetization reform since1998which enter into the state of booming development, it quickly became the new economic growth point and consumption hot spots. Real estate industry is an important asset for the modern economic society, while has made a great contribution in promoting economic growth, although has negative impact on financial and economic stability from two aspects between macro and micro, which have big affection. Monetary policy is one of important means in controling macro-economic regulation which includes interest rate, money supply and exchange rate will have far-reaching impact on the real estate market. So the study of monetary policy on controlling housing prices in China is of great significance.This paper combine with the present situation, theoretical and empirical methods to study the effectiveness of monetary policy on real estate price regulation, from the viewpoint of interest rate, money supply and exchange rate to study monetary policy affect the dynamic process of the price of the house. First of all, the theoretical part introduces the meaning and the main monetary policy tool in China. This paper combined theory with reality, using high-frequency monthly data from2000to2012, the relevant variables then use ADF test, cointegration test, AR test, then t establish monetary policy variables and the real estate price change.Results showed that the monetary policy of the interest rate, money supply and exchange rate on the real estate price has a role in regulating, which impact on housing prices in the money supply is most obvious. The consumption effect of rising property prices are weaker, in contrast, investment effect is stronger. Real estate prices and monetary policy final goal of empirical relationships found that prices can reflect the information of part of the inflation, but the indication is not obvious, prices will not necessarily lead to inflation. Prices on economic growth pull role is limited. Overall, prices of monetary policy effect is not very significant.