Research on the Housing Bubble and Monetary Policy

The real estate bubble and the economic problems caused by it are one of the biggest problems affecting the economy at present. However, in the process of national economic regulation, monetary politics is one of the factors affecting and forming the real estate bubble. In addition, there is a relationship between real estate bubble and inflation. This paper discusses and illustrates the relationship between monetary policy and real estate, and the relationship between real estate bubble and inflation from the perspective of monetary policy through the methods of theoretical analysis and case study. The critical role played by monetary policy in shaping the real estate market can be a catalyst for the formation of real estate bubbles in times of low interest rates. While effective monetary policy is a powerful tool to help stabilize inflation and stimulate economic growth, it can also increase economic instability and even trigger financial crises.