The Impulse Effect of Monetary Policy on Asset Prices: A Study of the Interactive Correlations among Interest Rate, Housing Prices, and Stock Prices

摘要

In recent years, the relations between the monetary policy and the asset prices have captured many economists' attention. On the basis of the study on dynamic correlations among interest rate, housing prices and stock prices and, the paper analyses the impulse effect of the monetary policy on asset prices in China. The conclusion is for the international mainstream views, of which support that it is inflation that should be the major focus of monetary policy.