Abstract: In recent years, the economic feature that housing market is booming, while the real economy is downturn emerging in China has led to a structural imbalance between housing market and real economy. In this context, how to effectively control the housing market and then revitalize the real economy has become an important issue. This paper constructs a dynamic stochastic general equilibrium model that can reflect the macroeconomic effects of housing price dynamics in China, and on the basis of which the effectiveness of macroeconomic policies is simulated. The results show that compared to credit growth and housing prices, generalized credit bias can become an effective policy signal of housing market regulation in macro-prudential policy, which significantly reduces the welfare loss. Macro-prudential policy pegging on generalized credit bias has effectively dampened housing price gains, weakened the crowding-out effect of the housing market on physical capital investment and smoothed output fluctuation. At the same time, the total social debt scale is more compatible with the real economy, significantly reducing the macro-leverage ratio and promoting the sound development of the housing market and real economy. The credit policy that supports the development of the real sector has the function of structural adjustment, promoting the transfer of capital to the real economy and guiding the flow of funds from the virtual to the physical industry. Under the current circumstances, policy-makers could promote the sound development of the financial and real economy by comprehensively using macro-prudential policies and credit policies and deepening financial reforms.

Key words: housing price dynamics; credit constraint; crowding-out effect; “the transfer of capital from the virtual to the real”