Xu, Jie with Wan Xuemei and Yan Guangle, "Quantitative Analysis of Inflation Issue in China", 1989

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It is no doubt that China is now facing a challenge of inflation: quick prices rising, over issued monetary, rapid growing total social demand and unsufficient production supply....The present paper studies the inflation issue in China in terms of the macroeconomic theory of system dynamics, in order to find the fundamental causes and the self-promoting mechanism of inflation in China. In this paper, factors of total social demand, monetary issue, etc. have been qualitatively and quantitatively discussed, some policy tests have been made, and finally the new viewpoints and suggestions which help to cut down inflation are put forward. It is a new test to study inflation by system dynamics instead of by regression or curve fitting.

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  • 1989
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