Zhang, C.——The World Economy: Monetary Dynamics of Inflation in China
时间:2013-06-22
This paper investigates both the short-run and the long-run relationships between monetary growth and inflation in China between 1980 and 2010. We construct multivariate dynamic models based on Friedman's quantity theory of money (but permitting money to be endogenous) and Meltzer's monetarist model. The empirical results provide robust evidence that there is a bilateral causal relationship between monetary growth and inflation as well as between monetary growth and output growth. An indirect an