A Review Of Last Inflation In China And Illumination On Anti-inflation

The inflation has being concerned as one kind of complex society-economic phenomenon by many scholars, which becomes to a difficult problem to many governments in this world as the same as the deflation. For example, one of the four ultimate goals in the monetary policy which is took by People's Bank of China is must stabilize the currency value of RMB. It is also to say that the government must control the inflation rate to prevent serious inflation or deflation. It underlines the importance of the inflation prevention in the macro-economic regulation and control. But the inflation which occurs in different time or countries often has the different factors and characteristics. In our country, it has experienced five inflations since the reform and opening policy. They occurred respectively from 1979 to 1983, 1984 to 1986, 1987 to 1992, 1993 to 1996 as well as the last inflation which occurred from 2006 to 2008. These inflations occurred under different economic and social backgrounds. And the last one happened after China jointed the WTO, the economic comprehensively opening to world, economic growth increasingly depends on international trading, and under the environment of an unprecedented active capital international circulation. So under the different economic backgrounds and international environments, it is impossible to find the exactly same factors or mechanisms in these inflations. Although since the 1930s, economists proposed such as the demand-pull, the cost-push, the supply-demand mixed model, the anticipated inflation theory and so on to explain the inflation origin and gave the corresponding governmental policies, but they always took a seal- economic country as the concealed object in their studies. Therefore, the former experiences on inflation controlling may not be suitable to deal with inflations which will happen in current and the future. Then, it is necessary to find the new inflation rules according to Chinese present situation.This article supposes an opened-large-economic country as the object of research, elaborately explains the factors which make Chinese inflation and analyzes the inflation conduct processes. This research aims to make clear these reasons which arouse China's last inflation and how did the inflation happen in our country. Then we get illumination from these analysis, and make a contribution for our government making more effective reactions to inflation.