China's Experience with Indexed Government Bonds, 1988-1996: How Credible Was the People's Republic's Anti-Inflationary Policy?

Richard Burdekin () and Xiaojin Hu

Review of Development Economics, 1999, vol. 3, issue 1, pages 66-85

Abstract: The People's Republic of China introduced indexed government bonds in the face of the inflation panic of 1988-89 and reintroduced them when inflation surged upward again in 1993. Measures of inflation expectations--as derived from the trading prices of these indexed bonds--suggest that the government gained credibility from its ability to contain inflation in 1989. But the governments failure to quickly half the 1993-95 inflation led, by late 1994, to soaring inflation expectations and, ultimately, a heavy financial penalty for the government as the 1992 and 1993 bond issues matured while inflation was still high. Copyright 1999 by Blackwell Publishing Ltd

Date: 1999
References: Add references at CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.blackwell-synergy.com/servlet/useragent ... &year=1999&part=null link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:bla:rdevec:v:3:y:1999:i:1:p:66-85

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1363-6669

Access Statistics for this article

Review of Development Economics is edited by E. Kwan Choi

More articles in Review of Development Economics from Wiley Blackwell
Series data maintained by Wiley-Blackwell Digital Licensing ().