Yan, Guangle, "System Dynamic Research to China’s Inflation", 1990

Downloadable Content

Download PDF
ua435

ABOUT THIS ITEM

Inflation is one of the most troublesome problems China is recently faced with in the course of the economy reform. The inflation takes place in the form of general price rising. It becomes more serious and is greatly obstructing the healthy development of China’s economy. This situation results from many factors including the biased trend of the reform strategy, the deviations in implementation policies, the defects of the economic system, etc. The conventional theory about money amount has been used to analyze inflation before. This analytic method specially indicates the view point that inflation with no exception is a kind of money phenomenon by stressing the causal relationships between money amount and general price level, but it considers money supply as an exogenous variable controlled by the government’s policies and ignores the effect and restrictions from other economic factors. Therefore there are some limitations of this method in real uses. For this reason a new approach of system dynamic is put forward in the present paper. A dynamic model composed of a monetary market section, a commodity market section and a regulation section is developed. On the model a series of policy tests mainly concerning the two economy levers of price and interest rate are simulated with the consideration of china’s special situation. The cause and mechanism of suggestions are also made for elimination or controlling the inflation. The results of the paper may provide worthful references for China’s further economy reform.

This is the whole item.

Date created
  • 1990
Type
Processing Activity License

ITEM CONTEXT

Part of

386b7d5fcd17a644199db727913a7a7a

Scope and Contents
Part of

e3ebd4855fa658877b17f518e29a6ac9

Scope and Contents
Part of

23d738ba88f8333bc39725f9cb5bd0b8

Scope and Contents
Collection
Collecting area

Items