Analysis of the Impact of Monetary Policy on the Real Estate Prices in China Based on the View of Money Supply

摘要

Standing in the view of money supply, this paper works to examine the impact of money supply adjusted by monetary policy on real estate prices. During the empirical studies, vector auto-regression model is adopted to test the impact by using quarterly time-series data from 1998 to 2015. Evidence suggest that a two-way granger causality exists in monetary policy and real estate price; Monetary policy's transmission has time lag and in order to make the real estate prices remain stable, we should make prevent policy in advance; We must control the excessive growth of housing prices effectively from the source and at the same time the Central Bank need to adjust monetary policy framework and inflation target for controlling the excessive growth of money supply.