Open Access Letter

Housing and monetary policy: Fresh evidence from China

by Yun Liu 1,*
College of Finance, Henan Finance University, Zhengzhou, China
Author to whom correspondence should be addressed.
Received: 28 November 2022 / Accepted: 25 December 2022 / Published: 27 December 2022


We empirically address the effects of monetary policy on the housing market in China using a novel Time-Varying Parameter VARX model. We show that an expansionary monetary has positive effects on the housing market, while during COVID-19, the effects are approaching to zero or even negative. In addition, the effects of the LPR policy are strong and even larger than that of COVID-19. Relative impulse response functions in the shorter and longer time horizons are dynamic and especially during COVID. This paper also contributes to the housing literature to show that COVID-19 can block the transmission of monetary policy.

Copyright: © 2022 by Liu. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
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Liu, Y. Housing and monetary policy: Fresh evidence from China. Financial Economics Letters, 2022, 1, 1.
AMA Style
Liu Y. Housing and monetary policy: Fresh evidence from China. Financial Economics Letters; 2022, 1(1):1.
Chicago/Turabian Style
Liu, Yun 2022. "Housing and monetary policy: Fresh evidence from China" Financial Economics Letters 1, no.1: 1.
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Liu, Y. (2022). Housing and monetary policy: Fresh evidence from China. Financial Economics Letters, 1(1), 1.

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