Hostname: page-component-78c5997874-ndw9j Total loading time: 0 Render date: 2024-11-10T09:28:53.820Z Has data issue: false hasContentIssue false
  • English
  • Français

Inflation in China Increasingly Driven by Domestic Factors

Published online by Cambridge University Press:  26 March 2020

Christian Dreger  and
Yanqun Zhang
Christian Dreger*
Affiliation:
German Institute for Economic Research (DIW Berlin), European University Viadrina Frankfurt Oder
Yanqun Zhang*
Affiliation:
Chinese Academy of Social Sciences (CASS), Beijing
*
e-mail: cdreger@diw.de.
e-mail: yqzhang@cass.org.cn.
Get access Rights & Permissions [Opens in a new window]

Abstract

The article investigates the determinants of consumer price inflation in China. While inflation has been entirely driven by international factors, such as food and energy prices, in the period preceeding the financial crisis, domestic drivers like monetary developments and nominal wages have become increasingly important since then. Due to tight trade linkages and the presence of Chinese firms in international production chains, the changing pattern is also relevant to other countries.

Keywords

Chinese inflationdomestic and foreign factorsmoney demandE31E41C32
Type
Research Articles
Information
National Institute Economic Review , Volume 223 , February 2013 , pp. R35 - R38
Copyright
Copyright © 2013 National Institute of Economic and Social Research

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Chow, G.C., (2006), ‘Are Chinese official statistics reliable?’, CESifo Economic Studies, June.CrossRefGoogle Scholar
Chow, G.C., (2010), ‘Note on a model of Chinese national income determination’, Economics Letters, 106, pp. 195–6.CrossRefGoogle Scholar
Dreger, C.Wolters, J., (2010), ‘Investigating M3 money demand in the euro area’, Journal of International Money and Finance, 29, pp. 111–22.CrossRefGoogle Scholar
Dreger, C.Zhang, Y., (2011), ‘The Chinese impact on GDP growth and inflation in the industrial countries’, DIW Discussion Paper 1151.CrossRefGoogle Scholar
Ericsson, N.R., (1998), ‘Empirical modelling of money demand’, Empirical Economics, 23, pp. 295–315, reprinted in Lütkepohl, H. and Wolters, J. (eds), Money Demand in Europe, Physica, Heidelberg (1999), pp. 29–49.Google Scholar
Research Group of China's Growth and Macroeconomic Stability (2008), ‘External shocks and China's inflation’, Economic Research Journal (Jing Ji Yan Jiu, in Chinese), 5, pp. 4–19.Google Scholar
Zhong, He, (2011), ‘China's inflation and supply management’, Journal of Quantitative and Technical Economics (Shu Liang Jing Ji Ji Shu Jing Ji Yan Jiu, in Chinese), 8, pp. 134–46.Google Scholar