The Research of Chinese Monetary Policy Influenced on Real Estate Market

Topics: Monetary policy, Real estate, Economics Pages: 17 (5577 words) Published: October 27, 2012
The research of Chinese monetary policy influenced on real estate market I. Introduction
Literature Review (an overview of relevant concepts and theories) A. Real estate and housing market.
1. The concept of real estate
2. Housing market
B. Basic principles of monetary policy and its effects.
1. The effectiveness of monetary policy
2. Principles of the transmission mechanism of monetary policy 3. The analysis of monetary policy plays a crucial role in the housing market II. Methodology (primarily derived from online resources of table and statistics) A. Generalize monetary policy and its conducting process through recent statistics. B. From the current situation and development trend of view Chinese entire real estate market. 1. Housing market supply structure is irrational.

2. The real estate bubble blowing big dashed.
3. Low-income families face housing difficulty
III. Analyze how the monetary policy effects the Chinese estate market IV. Suggestions to develop and perfect China real estate market V. Limitation of study
Since the housing reform in China in 1998, there is a rapid development of China's real estate industry. Starting from 2000, both needs and supplies are increasing, China's real estate industry is flourishing. In many areas real estate has become a pillar industry, the real estate industry shows a continued prosperous state and has became a new economic growth point and the consumer hotspots. But at the same time, the real estate prices are rising rapidly; it takes some negative social impacts in both macro and micro-economic aspects, and influences the economic and financial operations. In this paper, we’ll study how China's monetary policy conduction effect through the real estate price. The issue is to work out whether China's monetary policy transmission mechanism through real estate prices is effective. Along this problem, it analyzes theoretically how the monetary policy works on the real estate prices, and then how the fluctuations of real estate price affect the real economy.

【Key words】 Monetary Policy; Monetary Policy Transmission; Real Estate Prices; Interest Rate

With the reform of economic, the real estate industry in our country has developed rapidly. The development of real estate industry plays an important role in stimulating economic growth. But we also have to see that, affected by the influence and restriction of various factors, in the process of development, China's real estate industry will have some more difficult problem to solve. Since 2003, although the Central has issued a series of tighter monetary policy, China's real estate prices still run very high, the validity of monetary policy is questioned. The monetary policy, issued by the Central Bank, is one of the most important measures to deal with the crisis, while a sensitive and effective monetary policy transmission mechanism is the foundation of successful implementation of monetary policy. So in this background, the research of China's monetary policy transmission effect of real estate prices has certain theoretical and practical significance. From the view of real estate market participation body, this article makes a further analysis on the possible obstruction factors we may meet in the process of using monetary policy to control the real estate’s price, and at the same time, we will try to proposes the corresponding countermeasure to solve the problems. These measures are also trying to provide both theory and practice support to make the real estate market in China develops healthily and stably. I. Introduction

A. Real estate and housing market.
1. The concept of real estate
Real estate is defined as the land, buildings and a solid in the land, building an inalienable part of the various rights and its incidental. It’s also called immovable property. Real estate is a kind of property that can't be moved, or will cause nature, shape change after move. Due to its own...
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