Empirical analysis of the effects of monetary policy on house prices - Based on the VECM model

摘要

Over these years, China's real estate industry has achieved a rapid development. However, high house prices have become a hidden danger for the economy. Based on previous studies, this article selects three representative variables to build the vector error correction model (VECM) to test the impact of monetary policy on house price fluctuations Empirically. The result shows that there is a long-term stable relationship between monetary policy and house prices, and the monetary policy has a significant impact on house prices. To achieve the objectives of lowering house prices, central bank could combine administrative measures with the appropriate monetary policies.