Exchange rate reform and its inflationary consequences: an empirical analysis for China

Lu, Maozu; Zhang, Zhichao

doi:10.1080/0003684022000017575

Cited by 12 publications

(9 citation statements)

References 22 publications

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“…This present paper also successfully puts forward an appropriate measure of inflation persistence. Specifically, both MRPI and QRPI inflation series show a high degree of persistence overall, which is contrary to the findings of Lu and Zhang () that the inflation inertia is modest, based on the quarterly and seasonally unadjusted data for the period 1986Q1–1993Q4. These two series also indicate a slight decline in the level of the persistence since 1994, which is also found in Zhang and Clovis (, ) and Zhang ().…”

Section: Discussioncontrasting

confidence: 99%

“…Only a few published studies consider inflation persistence in developing countries, including China (e.g. Gottschalk, 2003;Lu and Zhang, 2003;Balcilar, 2004;Önder, 2009;Zhang andClovis, 2009 andChiquiar et al, 2010;Zhang, 2011), with most of the existing literature focusing on industrialized countries such as the USA, the UK and Canada (e.g. Nelson and Plosser, 1982;Fuhrer and Moore, 1995;Cogley and Sargent, 2001;Benati and Kapetanios, 2003;Levin and Piger, 2004;Sheedy, 2010).…”

Section: Introductionmentioning

confidence: 99%

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Multiple Structural Breaks and Inflation Persistence: Evidence fromChina

Wei

2015

Asian Economic Journal

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The degree of inflation persistence fluctuates more in developing countries than in industrialized countries. This is because there are more economic reforms in developing countries than in industrialized countries. Hence, it is important to study the inflation persistence in developing countries. The present paper investigates the pattern of inflation persistence in China, a developing and transitional economy. Specifically, the paper studies statistically the number of structural breaks in China's inflation persistence based on the monthly retail price index (MRPI) and the quarterly retail price index (QRPI) inflation series from 1983 to 2011. The findings show that there are five and three structural breaks in the MRPI and QRPI inflation persistence, respectively. The present paper also exposes a high degree of persistence over the whole sample period and a slight decline in the level of the persistence since 1994. Furthermore, the persistence of two inflation series does not change monotonously but with obvious cyclical patterns. Using these derived estimated structural breakpoints, likely causes of the breakpoints in inflation persistence are investigated. Finally, theoretical and practical implications are discussed.

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Section: Discussioncontrasting

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Multiple Structural Breaks and Inflation Persistence: Evidence fromChina

Wei

2015

Asian Economic Journal

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“…Our aggregate results for pass-through are higher in magnitude than those found byLu and Zhang (2003) andSharma (2003) but are consistent with those reported byMundlak and Larson (1992) andGaulier, Lahrèche-Revil, and Mejean (2006). Differences in pass-through coefficient estimates arise owing to variations in estimation method, sample selection, and data aggregation.…”

supporting

confidence: 91%

Agricultural Producer Support Estimates for Developing Countries: Measurement Issues and Evidence from India, Indonesia, China, and Vietnam

Orden¹,

Cheng²,

Nguyen³

et al. 2007

Research Report 152

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xiii cess that has reduced government involvement and created opportunities for economic activities within the private sector. Nevertheless, the outcomes in terms of levels of support show clear differences. Indonesia has provided the most consistent support for agriculture, particularly food crops. India has supported agriculture when world prices are low but has disprotected key grains, including rice and wheat, as well as agriculture overall, during many years. In these two economies, the reform process does not seem to have fundamentally changed the pattern of support levels observed over the period 1985-2002. China and Vietnam, in contrast, have transitioned from communist disprotection of agriculture to providing net support to the sector.

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“…Most of the studies have focused on Chinese currency and trade issues. For example, Chou (2000), Jin (2003), and Narayan and Smyth (2004) focused on the relationship between the Chinese currency and trade while Lu and Zhang (2003) examined the linkages between the Yuan and China's inflation. Others such as Moosa (2008), Zhang (2001) and Xu (2000) were concerned with exchange rate regime, policy and the misalignment of the Yuan.…”

Section: Introductionmentioning

confidence: 99%

A VAR Analysis Of US-China Economic Linkages

Hurley

2011

IBER

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An increase in Chinese purchases of U.S. treasury securities in parallel with Chinas commitment to maintain the value of the Yuan have been blamed in recent years for the divergence of the U.S. long-term and short-term interest rates. Results of the VECM, variance decomposition and impulse response analyses provided support for the growing speculations that growing Chinese demand for U.S. securities played a significant role in keeping the 10-year Treasury bill rate low while keeping the Yuan weak relative to the U.S. dollar. As for the U.S. long-term and short-term interest rates, the causality was found to run from the 10-year Treasury bill yield to the s rate which helps to explain why rising short-term rate in the U.S. since mid-2004 had little or no impact on the long-term rate.

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Exchange rate reform and its inflationary consequences: an empirical analysis for China

Cited by 12 publications

References 22 publications

Multiple Structural Breaks and Inflation Persistence: Evidence fromChina

Multiple Structural Breaks and Inflation Persistence: Evidence fromChina

Agricultural Producer Support Estimates for Developing Countries: Measurement Issues and Evidence from India, Indonesia, China, and Vietnam

A VAR Analysis Of US-China Economic Linkages

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