| dc.description.abstract |
Subprime mortgage crisis caused global financial crisis in the U.S in 2008. The U.S, Europe and Japan used Quantitative Easing Monetary Policy to rescue the economy. Taiwan’s government announced the lowering of interest rates at the same time, the re-discount rate reduced from 3.625% in the second quarter of 2008 to 1.25% in the second quarter of 2010, which was the lowest point in history. Quantitative Easing Monetary Policy in the U.S and Europe caused hot money to flow around the world. Another consequence was the unreasonably high rise in real estate prices in Taiwan.
To stop real estate market prices rising, the Taiwanese government has been releasing a series of policies since 2010 to reduce property speculation and force real state prices back to normal in order to prevent the real estate bubble bursting.
In this study, we use policy analysis, based on Improving the housing market program, provided by the Taiwanese government in April 2016. 4 main policy follow by: 1. lowered maximum mortgages 2. Luxury tax 3. Real Value Registry Scheme 4. Combined Housing and Real-estate Tax
The result of this study shows the same as the IMF suggested, that the tax system has the most effective result and smallest impact for economic system, the luxury tax policy reduces real estate transactions and that the Combined Housing and Real-estate Tax replaced luxury tax in 2016. In the same year, real estate transaction volumes broke a new low in 15 years, successfully reduced investors, real estate transactions returned to reasonable volumes. The price of real estate has gone down since 2014, Improving the housing market program has been successfully stabilized Taiwan’s economy and rescued us from the real estate bubble bursting. | en_US |