Research On The Impact Of Monetary Policy On The Price Of Chinese Art

With the rapid development of China’s economy in recent years,the art market has also realized rapid growth.With the continuous development of market size and structure,the investment property of art has become more and more significant.The art market has gradually become the third largest investment market after the stock market and the real estate market.Today when the currency is over issued,currency issuance far exceeds real economy,the artwork is also one of the high-yielding assets like our real estate,this makes the overrun of currency spillovers more flow to the high yield art market and then the price of art will rise.Therefore,it can be seen that the change in the price of art in China is closely related to the implementation of China’s monetary policy,and with the promotion of cultural industry’s status in China’s macro economy,the impact of monetary policy on the art market can also reflect the impact of monetary policy on the overall macro economy to a certain extent.Therefore,it is of great significance to study the impact of China’s monetary policy on the art market.And we can pinpoint the focus of policy implementation to promote the healthy and orderly development of Chinese art,so as to better generate positive effects for China’s macroeconomic operation.On the basis of reading and inductive analysis of the existing literature,this article focuses on the impact of monetary policy on the price of art,and discusses it in accordance with the research idea of"theoretical analysis-empirical test-policy recommendations".This article first briefly introduces the relevant theories of monetary policy,focusing on the formation and fluctuation of art prices.Theoretically discuss the influence of quantitative monetary policy and price monetary policy on the price of art,and add the analysis of the impact of the uncertainty of monetary policy on the price of art.Theoretical analysis suggests that quantitative monetary policy and price-based monetary policy have different effects on the price of art,and the uncertainty of monetary policy has also caused fluctuations in the price of art.Thereafter,this paper verifies the theoretical analysis conclusions by constructing a vector autoregressive model and conducting empirical tests such as cointegration test and impulse response.The empirical results show that there is a long-term co-integration relationship between the growth rate of broad money supply M₂,the weighted average interest rate of interbank borrowing,the uncertainty index of monetary policy and China’s art price index.Money supply has a positive effect on the price of art,and due to the heterogeneity of art,the effect of money supply on the price of art is relatively small.The interest rates and the uncertainty of monetary policy has an adverse effect on the price of art,and because China’s art market is not mature enough,investors are more cautious about investing in art,and the effect on art prices is relatively obvious.Finally,based on the results of theoretical and empirical analysis,this paper puts forward some Suggestions to promote the development of China’s art market.