Econometric analysis on the relationship between RMB exchange rate and real estate price by VAR model

摘要

Since the exchange rate reform of China, except for a short-term price fall, the real estate price rose rapidly and reached a record height. This paper chose the monthy data of exchange rate and real estate price from July 2005 to December 2012, and conducts an empirical analysis on the correlation effect of the exchange rate and real estate price by using economic theory, combined with the econometric model. The result showed that there is a positive relationship between them. Now, controlling the foreign capital to enter China due to the RMB appreciation has positive impact on maintaining the stability of China's real estate prices.