Abstract：Under the background of China’s real estate market regulation, this paper discusses the effectiveness of China’s monetary policy over the regulations of real estate market. The discussion shows that, the continuing rise of the real estate priceresults from its own inertia’s propulsion;money supply and financial credit have better regulating effects than actual interest rate. Then this paper summarizes that, compared with the one dominated by price mechanism, the controlling system giving prior to quantitative mechanism is more effective. The conclusion has important policy implications to the effective implementation of China’s monetary policy and regulation of real estate market.
Keywords: Monetary Policy Tools, Real Estate Market Regulation, Directed Acyclic Graphs, Variance Decomposition
source:Finance & Trade Economics ,No9,2013