The impact of monetary variables on the price level during inflation and deflation periods in China

Authors

Huayu SUN, Department of Economics, University of International Business and Economics, China
Yue MA, Lingnan University, Hong Kong; University of International Business and Economics, China; Macroeconomic Research Centre, Xiamen University, China; Hong Kong Institute for Monetary Research, Hong Kong Monetary Authority, Hong Kong

Document Type

Book chapter

Source Publication

Globalization, competition and growth in China

Publication Date

1-1-2006

First Page

229

Last Page

243

Publisher

Routledge

Abstract

This chapter tests the Granger causality from money (m) to price ( p) in China since the 1990s. This period is chosen for a number of reasons. The Chinese economy experienced both a historical double-digit inflation in the mid-1990s and unprecedented deflation in the late 1990s and early 2000s. The People’s Bank of China, which was given the status of the Central Bank of China in 1983, has been trying to adopt an active monetary policy to reduce inflation and contain deflation. However, there remains an open issue whether its policy is effective.

Additional Information

ISBN of the source publication: 9780203698693

Language

English

Recommended Citation

Sun, H., & Ma, Y. (2006). The impact of monetary variables on the price level during inflation and deflation periods in China. In J. Chen & S. Yao (Eds.), Globalization, competition and growth in China (pp. 229-243). London: Routledge.