Long-run mechanism for house price regulation in China: Real estate tax, monetary policy or macro-prudential policy?
China has experienced rapid economic growth in recent decades. The benefits of economic growth are indisputable. However, risks are also generated that can jeopardize the sustainability of economic progress. Real estate bubbles, for example. The rapidly soaring house prices are one of the severe challenges in China in recent years. The real estate tax, monetary policy, and macro-prudential policy are the three main measures of the Chinese government to stabilize house prices.