The Analysis That The Monetary Policy Impacts On The Price Of Real Estate

Since 2004, our country appears the trend that the price of the real estate rises.At the same time, a phenomenon that the price of the real estate of some cities overheating occurs. Meanwhile, the price of the real estate of Beijing, Shanghai, Shenzhen and many other cities rises rapidly, which causes our country’s high attention. Therefore, our country introduces a series of policy and measures to curb the price of the real estate expanding excessively fast. Thanks to those policies, they bring some positive changes to the real estate market. But in some cities, the increasing speed of the price of the real estate hasn’t been changed. The effect of monetary policy is not ideal, which has a negative impact on the function of our national economy. Thus, it is extremely urgent to find an effective method to adjust to the the price of the real estate. On the other hand, our country is with a vast territory, and there are huge differences between cities in the aspects of geographical environment and the development of economy. As a result, there exist obvious differences in the price of real estate between cities. In consequence, it is particularly important to study the different relation in cities between monetary policy and the price of the real estate so that our policy can have an effective control on the the price of the real estate.First of all, this article introduces the theory of monetary policy and the price of the real estate. It begins with brief recommend of the theory of monetary policy. And then, it give a description of the definition of the price of the real estate. After that, it summarizes the influence factors of the price of the real estate in theory. Finally, it introduces the influence mechanism of monetary policy on the real estate briefly.Secondly, this article introduces the process and the causes of the development of the price of the real estate in our country. First of all, it gives a statement of the characteristic of price fluctuation of the real estate from the perspective of the cities and overall. At last, it puts forward the factors of the change of the price of the real estate.Thirdly, this article makes an empirical analysis on that the monetary policy impact on the price of real estate. It introduces empirical method first, which include stationarity test, cointegration test, vector error correction model, Granger causality test, and Panel data model. Then, it determines variables and data it uses. Finally, it uses the above methods to give an empirical research in monetary policy’s impact on the price of the real estate in two aspects: on one hand, give an analysis of the influence of monetary policy on the price of the real estate on the whole. On the other hand, according to the standards of one-two-three-four line, all the cities in our country can be devided into four types, and choose thirty-five large cities from them as the object of the research to analyze the different effect of monetary policy on the price of the real estate between the cities.Finally, this artical summarizes the main conclusion of empirical analysis, and give the corresponding policy and recommendations: First, monetary policy must be targeted and discrepant; Second, improve the financial system in behind cities, and promote steady economy. Third, cooperate with other methods, and accelerate the healthy development of the real estate market.