China’s Monetary Policy Transmission Mechamism Of Real Estate Price

The sustained development of China’s real estate industry since the reform of the housing system from1998, it has gradually become a pillar industry of the national economy. However, due to a rather late, and various ancillary system is not perfect, China’s real estate industry in the development process appeared a lot of questions, including one of the most prominent problem is the real estate prices continued rising, which produced a very negative impact on the main microcosmic and macroscopical economy, and caused a wide-ranging discussion of the scholars.Monetary policy as one of the powerful tool of macroscopical economy regulation, in recent years repeatedly applied to the regulation of the real estate market, however, did not play a good role in curbing housing prices, so that people doubt the effect of monetary policy control real estate prices. Based on this background, this paper focuses on the monetary policy transmission mechanism of the real estate prices. First of all, from normative analysis discusses the monetary policy such as interest rates, deposit reserve rate and money supply impact on the real estate prices and when the real estate price changes what the real economy such as investment and consumption impact. Cointegration, impulse response and variance decomposition method followed by the use of the effect of test various monetary policy control real estate prices and property prices in the degree of the impact on the real economy.On the basis of the above theoretical analysis and empirical analysis, we draw the following conclusions:first affirmed the existence of a real estate price transmission mechanism of monetary policy, monetary policy would produce a certain effect of the regulation on the real estate prices, but at the same time it is undeniable that monetary policy regulation is still inadequate, there is still not smooth place in the transmission mechanism of monetary policy, to find the root of this mechanism is blocked corresponding policy recommendations.