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
Chapter 1 New Characteristics, Mechanisms, and Policy Responses
Chapter 2 China Inflation under Domestic and International Impacts
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
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
Chapter 9 Effects of Primary Commodity Price Increases on China’s Economy
Chapter 10 Effects of Wage Increases on China’s Economy: An Empirical Study Based on Input-Output Data
Chapter 11 Effects of the Wage Level on China’s Industrial Upgrading
Chapter 12 Research on Regional Industrial Relocation under Increasing Labor Remuneration
Chapter 13 Changes in the Trade Structure under Increasing Labor Costs
Chapter 14 Business Cycle, Inflation Cycle, and Stock Cycle
Chapter 15 Wealth Redistribution under Inflation: Comparative Studies of China and the United States
Chapter 16 A Study of Heterogeneity in China’s Welfare Costs of Inflation
Chapter 17 Re-estimation of China’s Urban CPI with Owner-Occupied Housing Prices Re-considered
Chapter 18 Estimation of China’s Core Inflation from the Perspective of Inflation Forecasting: A Persistence-Weighted Measure
Chapter 19 Which Type of Inflation Measure is the Most Suitable for the Intermediate Targets of China’s Monetary Policy?: An Answer from the Perspective of Inflation Forecasting
Chapter 20 The Coordination between Global Monetary Policy Adjustments and China’s Monetary Policy
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.