Empirical Study Of The Impact Of Monetary Policy On The Real Estate Prices

With the reform of the housing market and the accelerated pace of development of urbanization, the real estate market develops quickly, and becomes a pillar industry of China’s economic development. The rapid development of the real estate market leads to real estate prices inflation, not only damaging the people’s livelihood, but also extremely detrimental to economic development. In recent years, several monetary policy measures were taken to regulate the real estate prices, but real estate prices are still high. So, in the end whether monetary policy can regulate the real estate market effectively, ensuring the stable and healthy development of the national economy? Based on the above background, this paper is studied.This paper is divided into six parts. The first part outlines the background and significance of this paper, reviews the research scholars at home and abroad, and propose the study of this paper on this basis. The second part is the impact of monetary policy on the price mechanism theory. The third part is the past review of the effectiveness of monetary policy rates. The fourth part is the empirical analysis of this paper, using VAR models to study, including the unit root test, cointegration test, Granger causality test, impulse response function and variance decomposition analysis, respectively to study the effects of each variable on real estate prices, and then get the following conclusions:the amount of real estate investment and prices exists long-run equilibrium relationship, M2 and interest rate do not cause significant changes in prices, the deposit reserve rate can cause significant changes in prices. The fifth part is the impediments analysis of monetary policy to control prices.Based on the above theoretical and empirical analysis, combined with the actual economic situation, in order to further strengthen the regulation of the monetary policy on house prices, making a few suggestions, such as promote market-oriented interest rate reform, strengthening the reform of financial institutions, guiding the real estate market reasonably to be expected, and using with other policies and so on.