Abstract: Accurately identifying the short-term dynamic impact of monetary policy changes on housing prices and household consumption has important practical significance for boosting the current domestically depressed household consumption and controlling rapidly rising housing prices. The paper identifies a nonlinear time-varying correlation mechanism between monetary policy, house price and household consumption by constructing a time-varying coefficient vector autoregressive model with stochastic volatility (SVTVP-VAR). The empirical results show that: First, China's housing price rise  is an important factor leading to weak consumer spending, and monetary policy has countercyclical regulation on housing price increases. In order to get rid of the crowding-out effect caused by rising house prices in China, it is possible to implement vacant and property taxes nationwide, increase the cost of use and the cost of ownership of home-owned families and families with multiple homes, thereby releasing the vitality of residents’consumption. Second, the positive impact of monetary policy has a positive impact on both household consumption and housing prices, but at this stage, household  consumption is more responsive to the positive impact of monetary policy. This phenomenon fully shows that when the loose monetary policy is implemented at this stage, the market liquidity has flowed  into the non-residential consumer market in a moderate manner, but it has not flowed to the real estate market and caused the house price to surge. Therefore, in terms of monetary policy regulation, the current stable and loose monetary policy can stimulate residents' consumption through credit channels, but it is necessary to prevent excessive liquidity from flowing into the real estate market and severely crowding out household consumption.

Key words: Household Consumption; Real Estate Price; Monetary Policy; SVTVP-VAR Model