Research On The Coordination Of Macro Policies On The Real Estate Market

The real estate market in China really shows the seed of development from the late1970s. It has been30years, throughout the process, it has experienced exploration s reforming of state-owned land^cancelling of the housing material distribution system and becoming a pillar industry of driving our country economy. Because of the large number of real estate related industries and the large capital chain, its development becomes an important part of our national economy. So with real estate’s growing, the importance of healthy and sustainable development has become increasingly prominent. However, due to various factors affecting the real estate, there existed problems during the period of development, and the government also introduced a succession of different macro-control policies to deal with. However, in recent years, under intensive policies, China’s real estate market has still appeared the phenomenon of rising too quickly and continuously, and quantitative indicator such as price earnings ratio indicates that the real estate price bubble has formed and is growing. So the accumulation of financial risks and the impact on the policy transmission are bigger and bigger, which affects the transmission mechanism of policy control and makes the policy regulation in China in controlling of real estate prices facing a new significant challenge, we can not suppress excessive prices and let the price grow. When the government formulates policies, the risk and foam should be taken into account, so that prices can return to the state of stable. It is in this background, combined with the theory and empirical, this paper discusses monetary policy and fiscal policy respectively, using model results to study the effectiveness of implementation, and summarizing theirs weakness in all aspects. Confirming to combine different policies comprehensively to control house prices, on the basis of it, this paper suggests to coordinate different policies for our country to promote the real estate market in the direction of the healthy and sustainable development as a whole.In this paper, the content can be roughly divided into six chapters. The first is the introduction part, starting from the background of joint face at home and abroad, this paper discusses the significance, compiles the research status of domestic and foreign scholars on the real estate market regulation policy, views the variation between scholars, and finally comes to the conclusion that the influence of policy is uncertain. This stimulates the focus of this paper’s creation, that is a comprehensive analysis of fiscal policy and monetary policy-related variables on the mechanism of the real estate market, and analyzes the effects of various policy from both the effectiveness and shortcomings. Then is the introduction of relevant theories, it introduces changes of monetary policy and fiscal policy in regulation in the development process of China’s real estate market. Secondly, to investigate whether there is a bubble in China’s real estate, we use relevant indicators to analyze the status quo on prices, noting that the current level of the housing bubble is located. In the case of such high prices, China’s real estate is found to deviate from the healthy state of development, so we should implement effective measures to suppress prices. Because the house price is influenced by numerous factors, the real estate price’s fluctuation is complex, it is necessary to identify the key factors that focuses on the analysis to make our policies regulation more targeted. This paper mainly selects monetary policy and fiscal policy as the main research objects, and respectively discusses their effectiveness. By building a VAR model which contains the money supply, interest rates and credit policy to test Monetary policy, we find that credit policy is effective relatively. At the same time this paper tries to use the cobweb model to regress the supply and demand curve of Shanghai real estate market, detecting and verifying the effect of property tax on the impact of the demand curve’s elasticity. It combines the data of Shanghai’s property tax to determine the optimal property tax rates, and analyzes the shortcomings of current real estate tax:the rate is too low. Finally we conclude that the country should use credit policy intensify and accelerate the process of market interest rates. When increasing the use of fiscal policy, we should improve the property tax system., the protection of housing construction and the real estate market structural contradictions. Finally coordinating fiscal and monetary policy in the aspect of coordination characteristics, intensity and function in the real estate market, so that they can work together in enabling the real estate market to develop healthy and stably.