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The empirics of inflation in China

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  • Chow, Gregory C.
  • Wang, Peng

Abstract

A model to explain inflation in China was first estimated in 1985 and is updated using annual data from 1952 to 2008. The rate of inflation is well explained by its own lag, the growth rate of the ratio of money supply to output and an error correction term. The parameters of the model remain constant in spite of substantial changes in China's economic institutions after 1979.

Suggested Citation

  • Chow, Gregory C. & Wang, Peng, 2010. "The empirics of inflation in China," Economics Letters, Elsevier, vol. 109(1), pages 28-30, October.
    • Handle: RePEc:eee:ecolet:v:109:y:2010:i:1:p:28-30
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    References listed on IDEAS

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    1. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    2. Chow, Gregory C., 1987. "Money and price level determination in China," Journal of Comparative Economics, Elsevier, vol. 11(3), pages 319-333, September.
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    Cited by:

    1. Mie Augier & Robert McNab & Jerry Guo & Phillip Karber, 2017. "Defense spending and economic growth: evidence from China, 1952–2012," Defence and Peace Economics, Taylor & Francis Journals, vol. 28(1), pages 65-90, January.
    2. repec:pri:cepsud:220chow is not listed on IDEAS
    3. Chow, Gregory C., 2012. "A model of inflation in Taiwan," Economics Letters, Elsevier, vol. 117(2), pages 464-466.
    4. Gregory C. Chow, 2011. "A Model of Inflation in Taiwan," Working Papers 1333, Princeton University, Department of Economics, Center for Economic Policy Studies..
    5. Zhang, Lingxiang, 2013. "Modeling China's inflation dynamics: An MRSTAR approach," Economic Modelling, Elsevier, vol. 31(C), pages 440-446.
    6. Wang, Ying & Tu, Yundong & Chen, Song Xi, 2016. "Improving inflation prediction with the quantity theory," Economics Letters, Elsevier, vol. 149(C), pages 112-115.
    7. Tie Ying Liu & Chi Wei Su & Xu Zhao Jiang & Tsangyao Chang, 2015. "Is There Excess Liquidity in China?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 23(3), pages 110-126, May.
    8. Gregory C. Chow, 2011. "A Model for National Income Determination in Taiwan," Working Papers 1335, Princeton University, Department of Economics, Center for Economic Policy Studies..
    9. repec:pri:cepsud:222chow is not listed on IDEAS
    10. Gregory C. Chow, 2011. "A Model for National Income Determination in Taiwan," Working Papers 1335, Princeton University, Department of Economics, Center for Economic Policy Studies..
    11. Gregory C. Chow, 2011. "A Model of Inflation in Taiwan," Working Papers 1333, Princeton University, Department of Economics, Center for Economic Policy Studies..
    12. Muhammad Umar Draz, 2011. "Impact Of Financial Crises On Pakistan And China: A Comparative Study Of Six Decades," Journal of Global Business and Economics, Global Research Agency, vol. 3(1), pages 174-186, July.
    13. Zhenzhong Wang & Yundong Tu & Song Xi Chen, 2019. "Analyzing China's Consumer Price Index Comparatively with that of United States," Papers 1910.13301, arXiv.org.
    14. Zhang, Lingxiang, 2013. "Revisiting the empirics of inflation in China: A smooth transition error correction approach," Economics Letters, Elsevier, vol. 119(1), pages 68-71.

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    Keywords

    Inflation China;

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