Research On The Effects Of Different Types Of City Housing Prices On Monetary Policy

The real estate market occupies a very important position in my country’s national economy,and real estate has certain financial attributes.It is very important to maintain its stable and healthy development.Monetary policy is one of the most important policies for the government to macro-control the real estate market.Whether it is interest rates,total credit or money supply,the impact on the real estate market is very obvious.However,due to my country’s vast territory,large regional differences in economic development,and serious urban-rural dualization,the central bank’s unified monetary policy has had different impacts on different regions and different cities.In recent years,housing prices in Beijing,Shenzhen,and other cities in my country have continued to run at high levels,and even hit new highs,while housing prices in some third-and fourth-tier cities have dropped significantly,and the differentiation of the real estate market in different cities has become more and more obvious.In order to improve the effect of monetary policy on the real estate market,it is necessary to study the different responses of different types of cities to the central bank’s monetary policy,which is also conducive to further understanding the mechanism of monetary policy’s impact on the real estate market,as well as the formulation of “precise” monetary policy.Important reference significance.By combing the relevant literature at home and abroad,this article finds that there are indeed regional differences in the impact of monetary policy on the real estate market.This difference may come from the different transmission of interest rates,credit,or money supply,or from the economic aggregate of different cities,real estate Different responses to central bank monetary policy such as supply and demand and financial development level.This article reviews and summarizes the development history of my country’s real estate market and the changes in related monetary policies,and finds that the impact of my country’s monetary policy on different cities is significantly different.This article fully draws on the existing research results,starting from the three variables of interest rate,money supply and credit,to study the different impacts of central bank monetary policy on the real estate market in different cities.Therefore,in the empirical part,we selected China’s first-tier,second-tier and third-tier cities Some representative cities are used as samples.The annual data of average sales prices,interest rates,credit scale,and money supply of commercial housing in these sample cities from 2005 to 2018 are selected to establish PVAR models for first-,second-,and third-tier cities.Through impulse response analysis of different monetary policies on my country’s first-,second-,and third-tier cities’ house price adjustment effect differences.The empirical results of this paper show that different monetary policies in my country have different effects on the regulation of housing prices in various types of cities.For the regulation of housing prices in first-tier cities,relative to the size of credit,housing prices respond more strongly to the regulation of money supply and interest rate policies;but for second-tier cities,changes in housing prices seem to have no effect on the regulation of various monetary policies Obviously;for third-tier cities,the impact of interest rate policies on housing prices is not particularly significant,but housing prices have a strong response to credit scale and money supply.This article draws conclusions based on the results of theoretical and empirical analysis,and puts forward the following recommendations for different markets: First,the government should implement different monetary policies and different monetary policies for different regions to suit local conditions.Second,the number of financial institutions should be increased,the financial institution system should be improved,and the real estate financing channels should be broadened as a whole.Third,the marketization of interest rates in second-and third-tier cities should be increased,and various policies should be used to comprehensively regulate and control housing prices.