Monetary Policy’s Regulation and Control of Housing Prices under the Novel Coronavirus Pneumonia Epidemic

Abstract

In recent years, the downward pressure and uncertain factors of my country’s economic development have gradually increased, especially due to the greater impact of the novel coronavirus pneumonia epidemic in early 2020, it is necessary to adjust the monetary policy to make the economy operate stably. Monetary policy is the main means of controlling housing prices, so this article uses the sample data of my country from January 2011 to September 2020, and uses the time-varying parameter vector autoregressive (TVP-SV-VAR) model under the background of economic policy uncertainty (EPU) for the first time to analyze the price-based and quantitative monetary policies are very necessary to regulate and control housing prices. The study found that the increase in economic policy uncertainty will weaken the regulatory role of quantitative monetary policy but will strengthen the regulatory role of price-based monetary policy; the current economic policy uncertainty has increased, especially since the outbreak of the novel coronavirus pneumonia, the quantitative monetary policy is unstable, and the price-based monetary policy is the best choice for controlling housing prices.