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
Abstract
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