Monetary Policy Transmission, Real Estate Prices and the Impact on Macro-economy

摘要

Based on the real estate prices channel in monetary policy transmission, employing a structural VAR approach, this paper practical analyses the impact of monetary policy upon real estate prices and the effect of real estate prices upon some macroeconomic variables such as output, investment and consumption. The result indicates that in our country, the effects of the People's Bank of China using broad monetary supply (M2) to macro-control real estate prices is diminishing gradually; the short-term relationship between real estate prices and output exists, but the long-term relationship needs further study; the pulling effect of house price on consumption is significantly better than on investment, the wealth effect brought by real estate price is not significant in China.