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The empirics of inflation in China


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  • Chow, Gregory C.
  • Wang, Peng


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.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 109 (2010)
Issue (Month): 1 (October)
Pages: 28-30

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Handle: RePEc:eee:ecolet:v:109:y:2010:i:1:p:28-30

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Keywords: Inflation China;


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  1. 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. 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.
  2. 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..
  3. Zhang, Lingxiang, 2013. "Modeling China's inflation dynamics: An MRSTAR approach," Economic Modelling, Elsevier, vol. 31(C), pages 440-446.
  4. Chow, Gregory C., 2012. "A model of inflation in Taiwan," Economics Letters, Elsevier, vol. 117(2), pages 464-466.
  5. Gregory C. Chow, 2011. "A Model of Inflation in Taiwan," Working Papers 1333, Princeton University, Department of Economics, Center for Economic Policy Studies..
  6. 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.


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