Theoretical And Empirical Research On The Influence Of My Country's Money Supply On Real Estate Prices

Over the years,the scale of China's real estate industry has expanded rapidly.Although the rapid development of the real estate industry has made a tremendous contribution to the improvement of the national economy,it has also created an great financial revenue for the local government.However,it cannot be avoided that there is an unreasonable rise in the sales price of commercial housing.The benign development has also caused adverse effects.Therefore,it is necessary to use economic policies to regulate the development of the real estate industry.This article first describes the characteristics and influencing factors of real estate prices.Secondly,it discusses the transmission mechanism of the money supply that affects the real estate price level.At the same time,it analyzes the changing trends of the two according to the data of changes in money supply and real estate prices.Finally,this article selects the monthly data from February 2000 to December 2017,establishes a VAR model to empirically study the correlation between money supply and real estate prices.At the same time,it adds dummy variables that reflect real estate administrative control in the empirical research process.K1 and real estate development investment growth rate K2 as a control variable.Based on theoretical and empirical research results,this paper concludes that there is a significant positive correlation between China's money supply level and real estate price level.Therefore,in the policy practice,we should effectively control the money supply level and growth rate,so as to prevent the real estate price level from being excessively fast.rise.