Globalization and Changing Inflation Dynamics in China
Accepted version
Peer-reviewed
Repository URI
Repository DOI
Change log
Authors
Zhang, Chengsi
He, Huidong
Abstract
This article investigates the changing impact of economic globalization on inflation in China over the post-reform era. We construct an inflation dynamics model with globalization factors from microeconomic foundations. Empirical results with quarterly data spanning from 1984 to 2012 show that in 1994 there was a significant structural change in the inflation dynamics model, after which China’s inflation responded more significantly to foreign economic slack while the slope of the inflation-domestic slack relation reduced substantively.
Description
Keywords
globalization, inflation, NKPC, inflation dynamics
Journal Title
Emerging Markets Finance and Trade
Conference Name
Journal ISSN
1540-496X
1558-0938
1558-0938
Volume Title
52
Publisher
Informa UK Limited
Publisher DOI
Sponsorship
This research is supported by the National Natural Science Foundation of China (No. 71173224).