Inflation in China : Microfoundations, Macroeconomic Dynamics, and Monetary Policy book cover
1st Edition

Inflation in China
Microfoundations, Macroeconomic Dynamics, and Monetary Policy

ISBN 9780367898823
Published August 14, 2020 by Routledge
314 Pages 60 B/W Illustrations

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Book Description

Inflation plays a central role in macroeconomic and financial policy regulation, and its dynamic formation has gradually become a popular research topic in this field. This book comprehensively studies the dynamic mechanism of inflation in China from the perspective of New Keynesian economics.

By combining the dynamic trajectory of price changes since China's reform and opening-up under Deng Xiaoping as well as the underlying economic operating characteristics, the book deploys a multifaceted approach to understand the mechanism of inflation dynamics. The author explores the microfoundations of inflation dynamics, and underlines their importance in the context of modern monetary policy. In particular, he builds upon the traditional New Keynesian Phillips curve to include factors of globalization and financialization within the inflation formation regime of modern China.

As the book explores the dynamic mechanism of China's inflation from different perspectives including inflation cycle theory, price index internal conduction, price index chain transmission, capital rotation, and industry inflation mechanisms, international readers will gain a full understanding of China's inflation, monetary policy, and economy.

Table of Contents

1. Introduction  2. Dynamic Evolution of Inflation in China  3. Inflation Dynamics: Internal Transmission Perspective  4. Inflation Dynamics: Upstream and Downstream Transmission Perspective  5. Inflation Dynamics: Industry Tide Perspective  6. Inflation Dynamics: Goods Financialization Perspective  7. Inflation Dynamics: Equilibrium of Goods and Asset Markets Perspective  8. Inflation Dynamics: A Compromise Perspective between Monetarism and New Keynesianism  9. Target Mismatch and Dynamic Mechanism of Inflation  10. Inflation Expectations and Its Dynamic Mechanism  11. External Shocks, Monetary Policy, and the Structural Change of Inflation Dynamics  12. Excess Liquidity and Inflation Dynamics in an Open Environment  13. Exchange Rate Parity Relation Change and Inflation Dynamic Mechanism  14. Globalization and Inflation Dynamics  15. Disparities and Consistencies

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Chengsi Zhang is Cheung Kong Distinguished Professor of Finance at the School of Finance, Renmin University of China, specializing in monetary policy, inflation mechanisms, and financial development. He published articles in leading journals, including the Journal of Money, Credit and Banking, International Journal of Central Banking, and Journal of International Money and Finance, among many other academic journals.