ABSTRACT
This chapter proposes the real estate price-push mechanism for inflation in the context of monetary expansion. In order to study the dynamic driving mechanism between the money growth rate, the change rate of real estate prices, and the overall price change rate, the theoretical analysis framework in this chapter is based on two central parts, namely, Meltzer’s monetarism theory’s asset market equilibrium analysis framework and the aggregate supply and aggregate demand framework of an expanded commodity market. From the perspective of the characteristics of real economic performance, expansionary monetary policy for ensuring rapid economic growth, the increase in funds outstanding for foreign exchange under the mandatory foreign exchange settlement and sale system, and the excess liquidity brought by the expectations for appreciation of the renminbi in recent years are expressed as the rapid expansion of money supply.
