What is the Impact of the RMB Exchange Rate on China’s Inflation?
Managing Inflation in China: Current Trends and New Strategies looks at the current levels of inflation in China and offers predictions for the near-future. The authors survey the trends of the recent past and use a full range of statistics from the last 10 years to offer a frank assessment of current inflationary policy in China.
Reveals the internal causes of inflation by highlighting:
Links between the Flexible Renminbi (RMB) Exchange Rate and Inflation
False Transmission between CPI and PPI
Price Fluctuations of Bulk Commodities and Inflation
In an era where the Renminbi is poised to potentially become a globally traded reserve currency, an awareness of the risks of China’s inflationary policy is essential. Managing Inflation in China: Current Trends and New Strategies is the first of two invaluable works on this vital topic for those doing business in China today.
“The first volume of Managing Inflation in China: Current Trends and New Strategies illustrates a main strand of Chinese economic research. It is ambitious in scope and seeks to integrate both Chinese and foreign work. For those not intimately familiar with the Chinese economy, Chapter 3 is especially valuable. It correctly upends conventional views about the role of the money supply, emphasizing the crucial role of lending to producers.”
--Derek Scissors, PhD, Resident Scholar, American Enterprise Institute
Part I Overview
Chapter 1 New Characteristics, Mechanisms, and Policy Responses
Chapter 2 China Inflation under Domestic and International Impacts
Part II Internal Causes of Inflation
Chapter 3 The Relationship between China's Currency and Inflation: An Endogenous Money Perspective
Chapter 4 The False Transmission between CPI and PPI and
Its Rectification: A Relatively Robust Empirical Framework
Chapter 5 Explaining Price Increases of Agricultural Products with the Circulation System
Part III Inflation from an International Perspective
Chapter 6 How International Agricultural Product Prices Affect China's Agricultural Product Prices
Chapter 7 The Influence of the International Bulk Commodity Trade on China's Economy: An Analysis Based on International Comparison and Long-Term Development
Chapter 8 Analysis of the Changes in China's Terms of Trade under Increased Flexibility of the Renminbi Exchange Rate
About the Author
Liu Yuanchun is the Associate Dean of the School of Economics and Associate Director of the Institute of Economic Research, Renmin University of China. He is also the Director of China Society of World Economics. He is the author of The Renminbi Exchange Rate and China's Monetary Policies (2005), Framework of Open Macroeconomic Research (2005), China's CGE Model and the Renminbi's Exchange Rate Depreciation (2006), Macroeconomic Analysis and Forecasts: 2007–2008, and other works.