Modeling China Inflation Persistence

Chengsi Zhang and Joel Clovis
Additional contact information
Joel Clovis: School of Economics, and INTO, University of East Anglia

Annals of Economics and Finance, 2009, vol. 10, issue 1, 89-110

Abstract: This paper employs the recently developed structural stability tests with unknown break point and two median unbiased estimation methods to model China inflation persistence over the most recent quarter of a century. Our empirical results suggest that the persistence of both consumer price inflation and retail price inflation has witnessed declines over the most recent period of low inflation, with the reduction in consumer price inflation being more pronounced. The reduced inflation persistence helps to explain the remarkable phenomenon of high economic growth under the low inflation environment in China during the recent decade.

Keywords: Inflation; Inflation persistence; Structural break; Monetary policy (search for similar items in EconPapers)
JEL-codes: C22 E31 E52 E58 (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://aeconf.com/Articles/May2009/aef100106.pdf (application/pdf)
http://down.aefweb.net/AefArticles/aef100106.pdf (application/pdf)

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: https://EconPapers.repec.org/RePEc:cuf:journl:y:2009:v:10:i:1:p:89-110

Access Statistics for this article

Annals of Economics and Finance is currently edited by Heng-fu Zou

More articles in Annals of Economics and Finance from Society for AEF Contact information at EDIRC.
Bibliographic data for series maintained by Qiang Gao ().