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.
Liu, Y. Housing and monetary policy: Fresh evidence from China. Financial Economics Letters, 2022, 1, 1. https://doi.org/10.58567/fel01010001
Liu Y. Housing and monetary policy: Fresh evidence from China. Financial Economics Letters; 2022, 1(1):1. https://doi.org/10.58567/fel01010001
Liu, Yun 2022. "Housing and monetary policy: Fresh evidence from China" Financial Economics Letters 1, no.1: 1. https://doi.org/10.58567/fel01010001
Liu, Y. (2022). Housing and monetary policy: Fresh evidence from China. Financial Economics Letters, 1(1), 1. https://doi.org/10.58567/fel01010001
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