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Inflation in China Increasingly Driven by Domestic Factors

Published online by Cambridge University Press:  26 March 2020

Christian Dreger  and
Yanqun Zhang
Christian Dreger*
Affiliation:
German Institute for Economic Research (DIW Berlin), European University Viadrina Frankfurt Oder
Yanqun Zhang*
Affiliation:
Chinese Academy of Social Sciences (CASS), Beijing
*
e-mail: cdreger@diw.de.
e-mail: yqzhang@cass.org.cn.
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Abstract

The article investigates the determinants of consumer price inflation in China. While inflation has been entirely driven by international factors, such as food and energy prices, in the period preceeding the financial crisis, domestic drivers like monetary developments and nominal wages have become increasingly important since then. Due to tight trade linkages and the presence of Chinese firms in international production chains, the changing pattern is also relevant to other countries.

Keywords

Chinese inflationdomestic and foreign factorsmoney demandE31E41C32
Type
Research Articles
Information
National Institute Economic Review , Volume 223 , February 2013 , pp. R35 - R38
Copyright
Copyright © 2013 National Institute of Economic and Social Research

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