By Zhao Wei, Journal of Management World

Research Report, No.385, 2021 (Total 6450) 2021-12-13

Abstract: China’s real estate market not only shows the market features, but also reflects the characteristics of government empowerment and intervention. Expectation as a transmission channel for economic policies has become an international consensus. Therefore, regulating the housing price from the perspective of expectation management is a beneficiary trial, which can not only enrich the policy regulatory tools, but also improve the policy efficiency. In this regard, based on Agent’s new Keynesian model including new shock, this paper provides theoretical basis for optimizing the expectation management of real estate market, and then sets forth the following policy options: 1. Optimizing the implementation of expectation management, establish systematic and scientific communication mechanism, and effectively manage and guide the market expectation. 2. Releasing accurate news through government media to reduce policy uncertainties. 3. Setting precise news expiration dates and choose proper time to release policies. 4. Increasing the credibility of governments and correcting error messages in time.

Keywords: expectation management, real estate market, policy regulation, news shock