IDEAS home Printed from
MyIDEAS: Login to save this article or follow this journal

The Monetary Policy of China- An Econometric Model

  • ªarlea Mihaela


    („Babeº-Bolyai” University Cluj-Napoca Faculty of Economics and Business Administration)

  • Manþa ªtefan George


    („Babeº-Bolyai” University Cluj-Napoca Faculty of Economics and Business Administration)

  • Vãidean Viorela Ligia


    („Babeº-Bolyai” University Cluj-Napoca Faculty of Economics and Business Administration)

Registered author(s):

    An economy like that of China started out a lot of controversies and a lot of analysis. Recently, the monetary policy led by China gave birth to a series of disturbing questions, as follows: for how long can the fixed exchange rate be sustained? what will be the consequences of the continuous increase in foreign exchange reserves? is the expansionary monetary policy reliable? will the inflation bubble explode? In this article we apply an econometric model using the Eviews software in order to illustrate that the increase in money supply will eventually lead to inflation. This analysis is the basis to be followed up in the future if this co-dependence relationship between money supply and inflation continues. It would mean the end of the economic stability and growth of China. On the long run this model could prove that the Chinese economy is in fact a bubble ready to explode.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Article provided by Ovidius University of Constantza, Faculty of Economic Sciences in its journal Ovidius University Annals, Economic Sciences Series.

    Volume (Year): XII (2012)
    Issue (Month): 1 (May)
    Pages: 126-131

    in new window

    Handle: RePEc:ovi:oviste:v:xii:y:2012:i:12:p:126-131
    Contact details of provider: Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:ovi:oviste:v:xii:y:2012:i:12:p:126-131. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jeflea Victor)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.