Regional inflation and monetary policy in China

Research output: Contribution to journalArticlepeer-review

Abstract

This paper empirically examines developments in price and inflation in China. Unlike most previous studies, their determinants were investigated in the panel data context, and the author's findings are as follows. First, using the panel cointegration method, the study confirms a long-run relationship between price, money and output. Secondly, the author provides evidence that inflation can be explained by economic fundamentals such as money, credits, productivity, and exchange rate growth. While an increased concern about regional discrepancies in recent years, this relationship is more sensitive to the sample period than to the region type. Notably money does not seem to be closely associated with inflation over recent years.

Original languageEnglish
Pages (from-to)21-31
Number of pages11
JournalBanks and Bank Systems
Volume5
Issue number4
Publication statusPublished - 2010 Jan 1
Externally publishedYes

Keywords

  • China
  • Inflation
  • Panel cointegration
  • Panel data

ASJC Scopus subject areas

  • Finance
  • Organizational Behavior and Human Resource Management
  • Marketing
  • Management of Technology and Innovation
  • Law

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