Research On The Influencing Factors Of China's Inflation Based On Monetary Point Of View

In order to study how to achieve price stability, inflation has become a national monetary authorities and economists'important research topic. From China's reform and opening up, experiencing two times serious inflation, the 2002 era of our country go out of deflation, has started a new round of inflation. With China's rapid economic development, rising consumer price index, this makes us current face enormous inflationary pressures. In view of the situation, the academic use of different theories, select a different data sample, studied inflation in China launched a number of aspects of the research, and obtained a number of research results.Other scholars in the full study of existing research results of the premise, this paper based on the currency perspective, starting from the phenomenon, combined with the model theory construction, through the establishment of a reasonable measurement model, with a wealth of econometrical methods on the variables affecting inflation, the extent of direction and. Using co-integration test, can be drawn between the various factors of long-term equilibrium relationship; using Granger causality test, can detect the presence of each factor Granger causality between; use of error correction model analysis, can be found short-term changes of each factor on the adjustment of long-term equilibrium relationship between the deviation; using pulse function analysis, using comparative static equilibrium analysis, can characterize the various factors to affect the dynamics of the dependent variable. For the empirical analysis of the results can be found in the quantity theory of inflation in China has a strong explanatory power; the long term effect of various factors for the effects of inflation can be obtained through analysis of the theory, but the impact of short-term relationship is more complex. This is mainly because consumers expected their own self-realization and inflation has continued to impact on inflation.Of empirical findings, the paper puts forward policy recommendations in four areas:reducing the pressure of foreign exchange reserves, inflation, monetary and fiscal policy mix of stable operation, reduce inflation and reduce the impact of the sustainability of investment in fixed assets on the inflation pressure.