Exchange rate reform and its inflationary consequences: an empirical analysis for China
Exchange rate reform and its inflationary consequences: an empirical analysis for China
In examining China's exchange rate policy in the reforming years, the study finds empirical evidence of its long-run inflationary consequences, but the effects appear not to be sizable. In the short run, while changes in the devaluation rate are positively correlated with the increase in the growth rate of inflation, the inflation inertia is also modest. The moderate inflationary cost of devaluations provides some explanation of the smooth transition of exchange rate policy regime in China and the authorities' ability to put more weight on external competitiveness.
189-199
Lu, Maozu
f20c88e0-3bba-419d-a6a8-79f68f821095
Zhang, Zhichao
7a646262-463c-4035-b69b-beb5586b3209
2003
Lu, Maozu
f20c88e0-3bba-419d-a6a8-79f68f821095
Zhang, Zhichao
7a646262-463c-4035-b69b-beb5586b3209
Lu, Maozu and Zhang, Zhichao
(2003)
Exchange rate reform and its inflationary consequences: an empirical analysis for China.
Applied Economics, 35 (2), .
(doi:10.1080/0003684022000017575).
Abstract
In examining China's exchange rate policy in the reforming years, the study finds empirical evidence of its long-run inflationary consequences, but the effects appear not to be sizable. In the short run, while changes in the devaluation rate are positively correlated with the increase in the growth rate of inflation, the inflation inertia is also modest. The moderate inflationary cost of devaluations provides some explanation of the smooth transition of exchange rate policy regime in China and the authorities' ability to put more weight on external competitiveness.
This record has no associated files available for download.
More information
Published date: 2003
Identifiers
Local EPrints ID: 33426
URI: http://eprints.soton.ac.uk/id/eprint/33426
ISSN: 0003-6846
PURE UUID: 09fba815-2feb-45a7-b40f-cf2403f50691
Catalogue record
Date deposited: 16 May 2006
Last modified: 15 Mar 2024 07:44
Export record
Altmetrics
Contributors
Author:
Maozu Lu
Author:
Zhichao Zhang
Download statistics
Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.
View more statistics