Exchange rate reform and its inflationary consequences: an empirical analysis for China
In examining China's exchange rate policy in the reforming years, the study finds empirical evidence of its long-run inflationary consequences, but the effects appear not to be sizable. In the short run, while changes in the devaluation rate are positively correlated with the increase in the growth rate of inflation, the inflation inertia is also modest. The moderate inflationary cost of devaluations provides some explanation of the smooth transition of exchange rate policy regime in China and the authorities' ability to put more weight on external competitiveness.
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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 35 (2003)
Issue (Month): 2 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RAEC20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RAEC20|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gross, Dominique M. & Schmitt, Nicolas, 2000.
"Exchange rate pass-through and dynamic oligopoly: an empirical investigation,"
Journal of International Economics,
Elsevier, vol. 52(1), pages 89-112, October.
- Dominique M. Gross & Nicolas Schmitt, 1999. "Exchange Rate Pass-Through and Dynamic Oligopoly; An Empirical Investigation," IMF Working Papers 99/47, International Monetary Fund.
- Rudiger Dornbusch & Stanley Fischer, 1986. "The Open Economy: Implications for Monetary and Fiscal Policy," NBER Chapters,in: The American Business Cycle: Continuity and Change, pages 459-516 National Bureau of Economic Research, Inc.
- Rudiger Dornbusch & Stanley Fischer, 1984. "The Open Economy: Implications for Monetary and Fiscal Policy," NBER Working Papers 1422, National Bureau of Economic Research, Inc.
- Rtta Hanninen & Anne Toppinen, 1999. "Long-run price effects of exchange rate changes in Finnish pulp and paper exports," Applied Economics, Taylor & Francis Journals, vol. 31(8), pages 947-956.
- Maozu Lu & Zhichao Zhang, 2000. "Parallel exchange market as a transition mechanism for foreign exchange reform: China's experiment," Applied Financial Economics, Taylor & Francis Journals, vol. 10(2), pages 123-135.
- Lu, M. & Zhang, Z., 1998. "Parallel exchange market as a transition mechanism for foreign exchange reform: China's experiment," Discussion Paper Series In Economics And Econometrics 9807, Economics Division, School of Social Sciences, University of Southampton.
- Clark Leith, J., 1991. "The exchange rate and the price level in a small open economy: Botswana," Journal of Policy Modeling, Elsevier, vol. 13(2), pages 309-315.
- Feenstra, Robert C. & Gagnon, Joseph E. & Knetter, Michael M., 1996. "Market share and exchange rate pass-through in world automobile trade," Journal of International Economics, Elsevier, vol. 40(1-2), pages 187-207, February.
- Robert C. Feenstra & Joseph E. Gagnon & Michael M. Knetter, 1993. "Market Share and Exchange Rate Pass-Through in World Automobile Trade," NBER Working Papers 4399, National Bureau of Economic Research, Inc.
- Feenstra, R.C. & Gagnon, J.E. & Knetter, M.M., 1993. "Market Share and Exchange Rate Pass-Through in World Automobile Trade," Papers 93-14, California Davis - Institute of Governmental Affairs.
- Robert C. Feenstra & Joseph E. Gagnon & Michael M. Knetter, 1993. "Market share and exchange rate pass-through in world automobile trade," International Finance Discussion Papers 446, Board of Governors of the Federal Reserve System (U.S.).
- Menon, Jayant, 1995. " Exchange Rate Pass-Through," Journal of Economic Surveys, Wiley Blackwell, vol. 9(2), pages 197-231, June.
- Peter Hooper & Barbara R. Lowrey, 1979. "Impact of the dollar depreciation on the U.S. price level: an analytical survey of empirical estimates," Staff Studies 103, Board of Governors of the Federal Reserve System (U.S.).
- Johansen, Soren, 1995. "Likelihood-Based Inference in Cointegrated Vector Autoregressive Models," OUP Catalogue, Oxford University Press, number 9780198774501.
- Kuismanen, Mika, 1995. "Exchange rates and import prices in Finland : estimation of exchange rate pass-through," Research Discussion Papers 17/1995, Bank of Finland.
- Phylaktis, Kate & Girardin, Eric, 2001. "Foreign exchange markets in transition economies: China," Journal of Development Economics, Elsevier, vol. 64(1), pages 215-235, February.
- Younger, Stephen D, 1992. "Testing the Link between Devaluation and Inflation: Time Series Evidence from Ghana," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 1(3), pages 369-394, November.
- Zhang, Zhichao, 2001. "China's Exchange Rate Reform and Exports," Economic Change and Restructuring, Springer, vol. 34(1-2), pages 89-112.
- Papell, David H, 1994. "Exchange Rates and Prices: An Empirical Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 35(2), pages 397-410, May.
- Dwyer, Jacqueline & Lam, Ricky, 1995. "The Two Stages of Exchange Rate Pass-Through: Implications for Inflation," Australian Economic Papers, Wiley Blackwell, vol. 34(65), pages 157-179, December.
- Peter Hooper & Barbara R. Lowrey, 1979. "Impact of the dollar depreciation on the U.S. price level: an analytical survey of empirical estimates," International Finance Discussion Papers 128, Board of Governors of the Federal Reserve System (U.S.).
- Balakrishnan, Pulapre, 1994. "How best to model inflation in India," Journal of Policy Modeling, Elsevier, vol. 16(6), pages 677-683, December.
- Zhichao Zhang, 2000. "Exchange Rate Reform in China: An Experiment in the Real Targets Approach," The World Economy, Wiley Blackwell, vol. 23(8), pages 1057-1081, 08. Full references (including those not matched with items on IDEAS)