Over-Issued Currency and Real Estate Asset Prices in China Market

DOI

10.2991/aebmr.k.210319.111How to use a DOI?

Keywords

over-issued currency, real estate asset, asset prices, growth rate

Abstract

In the context of excessive currency issuance, the growth rate of real estate (hereinafter referred to as “RE”) and land prices is generally lower than the growth rate of broad money, while the growth rate of RE in first-tier cities is basically the same. On the one hand, China’s RE is a comprehensive value body that bundles a variety of resources, including household registration, school districts, hospitals, etc., which to a certain extent reflects the price level of items that are difficult to quantify. On the other hand, RE has strong financial attributes of value preservation and appreciation. It is one of the important asset pools that absorb over-issue currency. The combined effect of the two factors made China’s RE prices rise rapidly in the past. From a long-term perspective, the policy of ignoring over-issuance of currency is of little significance to the Chinese economy in transition. On the contrary, it delays the adjustment of economic structure and the transformation of growth mode, and is not beneficial to long-term economic growth.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Mingze Wu
PY  - 2021
DA  - 2021/03/22
TI  - Over-Issued Currency and Real Estate Asset Prices in China Market
BT  - Proceedings of the 6th International Conference on Financial Innovation and Economic Development (ICFIED 2021)
PB  - Atlantis Press
SP  - 600
EP  - 603
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210319.111
DO  - 10.2991/aebmr.k.210319.111
ID  - Wu2021
ER  -