Studies On The Relationship Between The Rate Of Inflation And The Rate Of Economic Growth In China

Inflation and economic growth are two very important macroeconomic phenomenon. The rate of inflation is the key economic indicator of the stability of overall macroeconomic of a country, and the rate of economic growth often reflects the economic strength of a country. Since the beginning of reform and opening up, China's economy has maintained a rapid growth. However, it has experienced several high inflation periods and the price level of consecutive months changes over 10%. Although the economists in our country have done some research on the relationship between the rate of inflation and the rate of economic growth, they didn't place the study on the first place. The paper tries to study the relationship between the rate of inflation and the rate of economic growth by using several methods of econometrics and puts the emphasis on the study of the empirical test of the relationship between the fluctuations of them.The structure of the paper is as follows: in the first part of the paper, we introduce the theories on the relationship between the rate of inflation and the rate of economic growth, which is the theoretical foundation of the paper. In the second part of the paper, we introduce the models and approaches which we can use to measure and test the relationship between the two variables. In the third part of the paper, we test the relationship between the rate of inflation and the rate of economic growth in our country by using the models and methods mentioned above. In the end, we draw the conclusion and give our economic suggestions.In the chapter 1 of the paper, we systematically introduced the theoretical studies on the relationship between the rate of inflation and the rate of...