Scholarlink

<p>We develop a DSGE model with heterogeneous households and financial frictions to analyze the impact of the central bank’s long-term bond purchase policy on China’s housing prices and its transmission mechanism, and compare its effect with the reserve requirement ratio cut policy. The study shows that the central bank’s purchase of long-term bonds can significantly boost housing prices by lowering government bond yields and injecting liquidity into banks, thereby lowering loan rates and stimulating loan demand. This effect is further strengthened as the policy is sustained. In comparison, the policy of cutting the reserve requirement ratio has a more limited and shorter-lived effect on housing prices. Moreover, the central bank’s bond purchases tend to guide residential demand, which is in line with the policy concept of “not speculating on housing”, but may also lead to a decline in consumption demand and increased banking risks.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

Liquidity‑driven credit expansion: how the people’s bank of China’s bond purchases stabilize Chinese housing prices

  • 期刊论文

  • 发表日期：

    2026年5月7日

查看全文
  • Xiaoyu Ling,
  • Zhihui Yang

摘要

We develop a DSGE model with heterogeneous households and financial frictions to analyze the impact of the central bank’s long-term bond purchase policy on China’s housing prices and its transmission mechanism, and compare its effect with the reserve requirement ratio cut policy. The study shows that the central bank’s purchase of long-term bonds can significantly boost housing prices by lowering government bond yields and injecting liquidity into banks, thereby lowering loan rates and stimulating loan demand. This effect is further strengthened as the policy is sustained. In comparison, the policy of cutting the reserve requirement ratio has a more limited and shorter-lived effect on housing prices. Moreover, the central bank’s bond purchases tend to guide residential demand, which is in line with the policy concept of “not speculating on housing”, but may also lead to a decline in consumption demand and increased banking risks.