IDEAS home Printed from https://ideas.repec.org/a/cuf/journl/y2024v25i2zhang.html
   My bibliography  Save this article

Monetary Policy and House Prices at Risk: Evidence from China

Author

Listed:
  • Licheng Zhang

    (Southern University of Science and Technology)

Abstract

This paper studies the effects of the M2 money supply shock on the down-side risks to house prices in China, using local projections and smooth local projections. We rely on measures of house prices at risk and downside entropy to capture the downside risks to house prices. Our results show that M2 monetary stimulus positively impacts house prices and can help mitigate downside risks to house prices. We investigate the monetary transmission mechanism through investment and find that the monetary stimulus shock boosts investment and benefits house prices. Our results suggest that monetary policy is an effective tool for managing downside risks to house prices in China.

Suggested Citation

  • Licheng Zhang, 2024. "Monetary Policy and House Prices at Risk: Evidence from China," Annals of Economics and Finance, Society for AEF, vol. 25(2), pages 741-753, November.
    • Handle: RePEc:cuf:journl:y:2024:v:25:i:2:zhang
    as

    Download full text from publisher

    File URL: http://down.aefweb.net/AefArticles/aef250212Zhang.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    China; Monetary policy; House prices at risk; Downside risks; Local projections;
    All these keywords.

    JEL classification:

    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cuf:journl:y:2024:v:25:i:2:zhang. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Qiang Gao (email available below). General contact details of provider: https://edirc.repec.org/data/emcufcn.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.